Domestic air passenger traffic increased by 67% YoY at around Rs 87-88 lakh in October. This comes on the back of festive season demand amid continuous decline in the number of Covid-19 cases, says an Icra report.
The credit ratings agency said that domestic passenger volume in October 2020 was at 52.71 lakh, while the increase in domestic passenger traffic was nearly 24 to 25% higher on a sequential basis as against Rs 71 lakh.
During the month under review, domestic carriers operated 46% more flights at Rs 72,000 as compared to 49,150 departures clocked in October 2020, the ratings agency said. It added that, the number of departures in October 2021 were sequentially higher by around 18%, as Covid-19 cases started to show a declining trend.
However, it stated that higher aviation turbine fuel (ATF) prices continue to pose a near-term challenge with price increasing sequentially by 13.9% in November 2021.
Icra said that the rising ATF prices and the relatively low capacity utilisation of aircraft fleet, will continue to hamper the financial performance of Indian carriers in FY22. It noted that the credit profile of most carriers continues to be characterised by a weak liquidity position.
The average daily departures were at around 2,400 in October 2021, which was significantly higher than the average daily departures of 1,585 in October 2020 and higher than around 2,100 in September 2021, Icra said.
It said that during October, the average number of passengers per flight this year was 122 as against an average of 117 passengers per flight in September.
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