The domestic aviation Industry is still recovering, with annual air passenger traffic increasing by about 60% to 13.60 crores in FY23, ICRA said on Wednesday.
Despite this, the credit rating agency reported that domestic air passenger traffic was still 4.0% below the 14.15 crore pre-pandemic level (FY20).
According to ICRA, Indian carriers carried 8.52 crore passengers on regional flights in the fiscal year that ended in March 2022.
According to Suprio Banerjee, Vice President of ICRA, domestic passenger traffic they reached 1.30 crore in March of this year, up about 22% from the March 2022 volume of 1.06 crore.
He said overall airline capacity deployment increased by 38% in FY23 compared to FY22.
Growing Indian Aviation Industry
According to ICRA, the airlines’ capacity deployment last month was 14% higher year on year and 7% higher than the pre-COVID level of March 2019.
According to ICRA, the domestic passenger load factor of the airline industry is expected to be 89% in March 2023, up from 82% the previous year and 87% in March 2019. (pre-COVID levels).
Despite a healthy recovery in passenger traffic, the domestic aviation industry continues to face challenges due to rising aviation turbine fuel prices and the rupee’s depreciation against the US dollar, which significantly impact the airlines’ cost structure, respectively, according to the report.
Mr Banerjee added that the airlines’ efforts to ensure fare increases proportionate to increases in input costs would be critical to expanding their profit margins.
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