Domestic air passenger traffic continued on the growth trajectory in August with volumes rising up to 31 percent to 66 lakh across the previous month, encouraged by higher capacity deployment and a downward trend in the pandemic, credit rating agency Icra spoke on Monday.
The domestic passenger traffic in July 2021 was 51 lakh, Icra said in a statement.
Domestic passenger traffic on a year-on-year basis, however, spiked around 131 percent above August 2020 traffic of 28.3 lakh, it said.
- The evaluation agency said despite the continued improvement in the past month, there is continued stress on request, driven largely by the second wave of the pandemic, limiting the journey to only necessary travel.
Air travel demand
“The air travel demand has continued to register improvement and the same grew by nearby 30-31 percent at almost 65-66 lakh in August, compared to around 50.1 lakh in July 2021, signifying a yo-y growth of around 131 percent,” Kinjal Shah, vice president and Co-group Head for Corporate at Icra, said.
The airlines’ capacity deployment for August 2021 was around 99 percent higher at around 57,500 departures, as on 28,834 departures in August 2020, Shah said, adding that on a sequential basis, the number of departures in August 2021 was higher by almost 22 percent, as Covid-19 infections demonstrated a downwards trajectory.
August 2021
- “For August 2021, the average daily departures were at around 1,900, significantly higher than the average daily departures of around 900 in August 2020, and higher than around 1,500 in July 2021, though it remains lower than around 2,000 in April 2021,” Shah said.
Flight during August
The average number of tourists per flight during August 2021 was 114, against an average of 106 passengers per flight in July 2021, she said.
Though the recovery continued in August 2021, there is resumed stress on demand, driven mostly by the second wave of the pandemic, limiting the demand to only important travel, while both leisure and business travel have been curtailed due to various state-wide restrictions, despite the decline in infections, she said.
Civil aviation ministry
The civil aviation ministry permitted increasing the capacity deployment on domestic routes, gradually from 33 percent, with effect from May 25, when domestic travel returned after the first wave last year, to 80 percent, with impact from December 3, 2020.
However, it reduced the permissible limit deployment to 50 percent of pre-Covid levels, with an impact from June 1, 2021, due to the resurgence of the second wave of the pandemic.
- It had again increased the permitted limit to 65 percent with effect from July 5, which has afterward been increased to 75.2 percent from August 12 this year, Icra said.
In addition, the ministry has also increased the minimum and maximum fare band by 10-13 percent for domestic flights with effect from August 12, 2021, till August 31, 2021.
“In ICRA’s view, the price increase may not actually impact the passenger traffic demand as in the current scenario, travel is limited to only necessary travel while both leisure and business travel has been curtailed due to various state-wide limitations and the spread of the infections. However, it will permit airlines to recover some part of the increase in jet fuel costs, thereby cushioning some impact on the airlines’ losses,” it stated.
Also read: Delhi Aviation: Ordered To Cut Height of Vasant Kunj buildings, Residents Upset
Also read: Chandigarh airport to start cargo facility in November
Thank you
