Domestic air passenger traffic up 37 pc in September: ICRA
Oct 05, 2020
New Delhi [India], Oct 5 : The Indian aviation industry witnessed continued recovery in domestic passenger traffic during September with a sequential growth over August of 37 per cent to 39 lakh passengers, according to investment information agency ICRA.
The capacity deployment in September at 46 per cent vis-a-vis September 2019 is a significant increase over the 33 per cent capacity deployed in August. On a year-on-year basis, domestic passenger traffic declined by 66 per cent.
ICRA said it has a negative credit outlook on the Indian aviation industry. It expects profitability of the industry to be adversely impacted in FY21 due to lower revenues and high fixed costs.
"While some airlines have sufficient liquidity and financial support from a strong parentage, which will help them sustain over the near term, those already in financial stress are now facing existential crisis."
However, ICRA Vice President Kinjal Shah said the number of flights departing gradually increased from 416 on Day 1 to 1,488 on Day 128 (September 28).
For September, the average daily departures were 1,311, significantly lower than the average daily departures of 2,874 in the same month of last year, though much better than 930 in August.
The average number of passengers per flight during September was 98 as against an average of 133 passengers per flight in September 2019.
Thus it is expected that domestic aviation industry operated at a passenger load factor (PLF) of 63 per cent in September as against 85.5 per cent in the year-ago period and that too on a low capacity.
The PLF for September was similar to August despite the increase in capacity deployment by 37 per cent. Overall, from May 25 till September 30, the domestic passenger traffic has been 11 million.
Shah said the prolonged shutdown of manufacturing activities in several countries and subsequent impact of the Covid-19 outbreak on the global economic activity will keep crude oil prices and thus the aviation turbine fuel prices low.
