Domestic air passenger traffic up 3% in September compared to August: ICRA

Though the recovery continued in September, ICRA said, the demand continues to be subdued from the corporate traveller segment

The domestic air passenger traffic grew by 2-3 per cent at around 68-69 lakh in September this year compared to August while last month's plane deployment was 54 per cent higher than what was one year ago, an analysis by ICRA has said.

Though the recovery continued in September, it said, the demand continues to be subdued from the corporate traveller segment as reflected by passenger traffic being lower by 38 per cent last month compared to pre-Covid-19 levels.

The domestic air passenger traffic grew by 2-3 per cent at around 68-69 lakh in September compared to 67 lakh in August. If one takes year-on-year growth, it would be 74 per cent.

The airlines' capacity deployment for September was around 54 per cent higher than September 2020 -- 61,100 departures in September this year as against 39,628 departures in September last year. On a sequential basis, the ICRA said, the number of departures in September 2021 were higher by 6 per cent, as Covid-19 infections demonstrated a downward trajectory.

The average daily departures were at 2,100 last month, significantly higher than the average daily departures of 1,321 in September last year and higher than 1,900 in August 2021, though they remained lower than 2,200 in Jan 2021.

The average number of passengers per flight during September was 113, against an average of 117 passengers per flight in August.

On the aviation turbine fuel (ATF) prices, it said there has been a sharp increase of 78.6 per cent on a year-on-year basis till October this year, attributed to increase in crude oil prices. "This coupled with low capacity utilisation of aircraft fleet will continue to weigh on the financial performance of Indian carriers in FY2022. Furthermore, the credit profile of most Indian carriers continues to be characterised by a weak liquidity position," it said.

Referring to the increase in permitted capacity, it said the increase in permitted capacity to 85 per cent levels is a step in the right direction, given the onset of the festive season.

"Also, reduction in fare cap rollover period from 30 days to 15 days is a move towards market-driven pricing as applicable during the pre-Covid-19 period, wherein the pricing was determined by the actual demand-supply dynamics and real passenger load factors," it said.

Under the Vande Bharat Mission for evacuation of Indian citizens from foreign countries, which started from 7 May, 2020, international passenger traffic (inbound and outbound) for Indian carriers stood at 46 lakh till September 30 this year.

International passenger traffic for Indian carriers under the VBM was estimated at four lakh, a sequential growth of 30 per cent, for September this year.

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