BLITZ BUREAU
NEW DELHI: India’s domestic air passenger traffic rose to 132.8 lakh in June this year which represents a 6.3 per cent increase over the corresponding figure for June last year and reflects a robust 10.4 per cent jump over the pre-Covid levels, as per an ICRA report on July 9.
ICRA has maintained a stable outlook on the Indian aviation industry amid the continued recovery in domestic and international air passenger traffic, with a relatively stable cost environment and expectations of the trend continuing in FY2025, the report states.
Moreover, the industry witnessed improved pricing power, reflected in the higher yields (over pre-Covid levels) and, thus, the revenue per available seat kilometre–cost per available seat kilometre (RASK–CASK) spread of the airlines.
The momentum in air passenger traffic witnessed in FY2024 is expected to continue into FY2025, though further expansion in yields from the current levels may be limited, the report added.
Despite a healthy recovery in air passenger traffic and improvement in yields, the movement of the latter will remain monitorable amid elevated Aviation Turbine Fuel (ATF) prices and depreciation of the INR vis-a-vis the $ over pre-Covid levels, both of which have a major bearing on the airlines’ cost structure.
The average ATF prices stood at Rs 103,499/KL in FY2024, which was lower by 14 per cent than Rs 121,013/KL in FY2023, but significantly higher by 58 per cent than the pre-Covid level of Rs 65,368/KL in FY2020.
