‘Seats sold per aircraft were 84% in both October 2019 and October 2022; This is due to grounding of some planes instead of increasing the number of passengers.
‘Seats sold per aircraft were 84% in both October 2019 and October 2022; This is due to grounding of some planes instead of increasing the number of passengers.
Despite festive demand last month, air passenger numbers failed to match pre-COVID-19 levels and fell 8% behind.
According to rating agency ICRA, the domestic passenger traffic for October 2022 is estimated to be 114 lakh. This figure is 10% higher than the figure of 103 lakh seen in September and 26% higher than in October 2021. However, it is still 8% lower than the level seen in October 2019, noted ICRA.
For the seven-month period of FY23 (April-October 2022), domestic passenger traffic is estimated to be 740 lakhs, a year-on-year growth of 91%. However, this figure is 11% less than the April-October 2019 (pre-Covid level).
According to ICRA, supply-chain issues resulted in delays in the deployment of aircraft as well as engines (forcing the grounding of the aircraft) and airlines had 11% fewer aircraft seats than pre-COVID levels . As a result, although demand was low, aircraft were as full as before, as the passenger load factor (seats sold per aircraft) was 84% in both October 2019 and October 2022.
Although passengers are dealing with higher fares as airlines try to improve yields, ICRA said airlines were unable to offset the impact of rising ATF price, which hit a year-on-year basis in November 2022. 47% higher.
Supriyo Banerjee, Vice President and Sector Head, Corporate Ratings, ICRA said, “The recovery in earnings for domestic airlines will be slow due to higher ATF prices as well as depreciation of rupee against the dollar.”