With the end of peak season, international passenger traffic for Indian airlines showed a decline in numbers but was in green as compared to July 2020 numbers, Investment Information and Credit rating Agency of India (ICRA) reports.
In August 2022, airlines ferried 32% more passengers than the 1.98 million recorded in August 2019, ICRA said. In July 2022, this figure was 2.3 million international passengers which was 25% more than July 2019.
As international flights resumed full operations on March 27, 2022, June 2022 recorded the highest number of international passengers at 4.4 million, 79% of pre-COVID levels.
Domestic passenger traffic for last month stood at 12 million, which is 5% more than July 2022, but 14% lower than August 2019.
Suprio Banerjee, Vice President and Sector Head - Corporate Ratings, ICRA Limited said: “A quick recovery in domestic passenger traffic is expected in FY2023, aided by normalcy in operations and 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.”
Airlines deployed almost 37% more capacity in August 2022 as compared to the first eight months of 2022, though this was lower by 10% than pre-COVID levels. The passenger load factor for the domestic aviation industry was at 80% in August 2022, higher than 72% seen in the same month last year.