Domestic air passenger traffic grew about 6% month-on-month in December, but the emergence of the new virus variant and travel restrictions by state governments posed an imminent threat to recovery, ICRA noted.
IndiGo on Sunday said it will cancel 20% of its flights due to a drop in travel demand and cancellations. Government data also shows that domestic traffic in the first week of January decreased by 16% compared to the same period last month. After a steady increase in the past few months, there has been a downward trend.
In December, airlines carried a total of 111 lakh passengers from 105 lakh in November, said ICRA
Average daily departures last month stood at around 2,800, up from 2,700 in November and 2,065 in the year-ago period, when airlines were subject to capacity restrictions due to the COVID-19 pandemic.
more headwinds
“While a gradual recovery continued in December 2021, driven largely by leisure travel, fueled by festivities and leisure travel at the end of the calendar year, demand from the corporate passenger segment remains subdued, as of the nine-month FY22 For passenger traffic is represented by. About 44% less than the nine-month FY20,” said Supriyo Banerjee, Vice President and Sector Head, ICRA Ltd.
Aviation turbine fuel costs, which rose 49% on a year-on-year basis till January, will continue to impact the financial performance of Indian airlines, especially given that travel demand has started declining once again, the rating agency said. Saw it.
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