Dynamite News Domestic Air Passenger Traffic Rises By 3 PC In November
The domestic air passenger volume registered 3 per cent growth in November 2022 at 117 lakh compared to 114 lakh registered in the previous month, rating agency ICRA said on Monday. Read on for details:
New Delhi: The domestic air passenger volume registered 3 per cent growth in November 2022 at 117 lakh compared to 114 lakh registered in the previous month, rating agency ICRA said on Monday.
The growth was 11 pc higher in comparison to the domestic passenger traffic in November 2021, although it fell short by 10 pc, compared to pre-Covid levels i.e. November 2019, a report prepared by Suprio Banerjee, Vice President and Sector Head - Corporate Ratings, ICRA Limited.
For 8M FY2023 (April-November 2022), domestic passenger traffic is estimated at 858 lakh, a Year-on-Year growth of 74 pc, and lower by 10 pc compared to April-November 2019 (pre-Covid levels), the agency said.
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'The airlines’ capacity deployment in November 2022 was slightly higher (less than 1pc) than in November 2021. However, it was lower by 12% than the pre-Covid levels. It is estimated that the domestic aviation industry operated at a passenger load factor (PLF) of 89 pc in November 2022, against 80 pc in November 2021 and 90% in November 2019, it said.
The rating agency said a steady rise in prices of aviation turbine fuel (ATF) and a general inflationary environment continue to dampen the industry earnings, with ATF prices in December 2022 higher by 53% on a YoY basis.
'Although, the same declined by 2.2 pc sequentially. While airlines have been increasing yields, in ICRA`s view, the same has not been adequate to offset the impact of the rising ATF prices. The delay in delivery of components and spares for aircraft and engines continues to impact the sector, thereby leading to the grounding of certain aircraft for some domestic airlines,' it said.
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The agency said a quick recovery in domestic passenger traffic is expected in FY2023, aided by normalcy in operations and the waning pandemic.
However, the earnings recovery for domestic airlines will be slow-paced due to elevated ATF prices in addition to the rupee depreciation against the US Dollar amid a heightened competitive environment, it added. (UNI)