New Delhi, June 7 (FN Agency) The international passenger traffic for Indian carriers surged to 2.2 million in May 2022, which is higher than the number of people travelled before the Covid pandemic, after resumption of scheduled international operations since March 27, 2022, credit rating agency ICRA said on Tuesday.The Indian airlines carried 24 per cent more international passengers in May this year compared to May 2029, which was 1.8 million, the agency said. The waning Covid-19 infections resulted in Y-o-Y growth of 4.4 times in domestic air passenger traffic to 11.4 million in May 2022, compared to 2.1 million in May 2021, and was just 7% lower compared to 12.2 million in May 2019 (pre-Covid level).Sequentially, the domestic air passenger traffic in May 2022 was 5% higher compared to 10.9 million in April 2022.
The airlines’ capacity deployment for May 2022 was 2.1 times higher than in May 2021 (86,289 departures in May 2022 against 27,725 departures in May 2021).Suprio Banerjee, Vice President and Sector Head, ICRA said, “For May 2022, the average daily departures were at 2,784, notably higher than the average daily departures of 894 in May 2021, and higher compared to 2,726 in April 2022. The average number of passengers per flight during May 2022 was 132, against an average of 133 passengers per flight in April 2022 and lower than an average of 139 passengers per flight in May 2019.
Though recovery in passenger traffic is expected to be relatively fast-paced in FY2023, given the near normalcy situation seen in domestic airline operations, the overhang of any further Covid wave looms on the sector. ”Elevated ATF prices aggravated by geo-political issues will remain a near term challenge for the industry and will continue to weigh on the profitability of Indian carriers. It is estimated that the yields for domestic routes have moved up on an average between 18-20% over the past 12 months,” he said. The agency said the rising ATF prices will pose a serious threat to the industry earnings in FY2023. ‘On an aggregate basis, a return to normalcy will lead to recovery in passenger load factors, which in turn will aid revenues; however, elevated ATF prices will continue to weigh on the earnings of Indian carriers in FY2023,’ it said.