New Delhi, Sep 15 (Mayank Nigam) The domestic aviation industry continues to witness recovery, with domestic passenger traffic for August 2022 estimated at 102 lakh, 5 per cent higher compared to 97 lakh in July 2022 and 52 per cent higher in comparison to August 2021, credit rating agency ICRA said on Thursday. However, the domestic passenger traffic fell short by 14 per cent, compared to pre-Covid levels i.e. August 2019, a report prepared by Suprio Banerjee, Vice President and Sector Head – Corporate Ratings, said. For five months of FY2023 (April-August 2022), domestic passenger traffic is estimated to be at 524 lakh, a YoY growth of 131 per cent, and lower by 11 per cent compared to April-August 2019, the report said. The airlines’ capacity deployment in August 2022 was 37 per cent higher than August 2021. However, it was lower by 10 per cent than the pre-Covid levels, it added.
‘It is estimated that the domestic aviation industry operated at a passenger load factor (PLF) of 80 per cent in August 2022, against 72 per cent in August 2021 and 85 per cent in August 2019. “The international passenger traffic for Indian carriers in August 2022 strongly surpassed the pre-Covid level of 19.8 lakh by 32 per cent,’ the report 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 September 2022 higher by 83 per cent on a YoY basis. “However, the same declined by 0.7 per cent 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,’ it added. ‘A quick recovery in domestic passenger traffic is expected in FY2023, aided by normalcy in operations and a 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$ amid a heightened competitive environment’ the credit rating agency said.