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Business News/ Economy / Air passenger traffic recovering amid declining covid cases
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Air passenger traffic recovering amid declining covid cases

The third wave of the covid-19 pandemic could lead to fresh turbulence for air traffic, delaying the domestic aviation industry's recovery to FY24 from FY23

Domestic air passenger traffic has seen significant growth since last June, with the easing of lockdown restrictions following a steady decline in fresh covid-19 cases, giving more people the confidence to undertake travel.Premium
Domestic air passenger traffic has seen significant growth since last June, with the easing of lockdown restrictions following a steady decline in fresh covid-19 cases, giving more people the confidence to undertake travel.

NEW DELHI: Average daily domestic air passenger traffic recovered in the week ended 29 January when compared to the previous seven-day period amid declining third wave covid cases.

The average number of daily flyers rose to 171,000 last week from 168,000 in the previous week, brokerage firm ICICI Securities said in a report on Monday.

This is the first time since the beginning of the month that average air passenger traffic has seen a rise, after recording steep decline for several weeks.

The number of flyers per departure rose to 105 from 94 during the same period.

However, the average number of daily departures fell to 1,624 from 1,787 in the previous week, as airlines cut capacity amidst falling passenger traffic.

In comparison, the total number of departing domestic passengers stood at 211,992 while the total number of domestic flight arrivals stood at 1,803 on 30 January, according to the latest data from the Ministry of Civil Aviation (MoCA).

Domestic air passenger traffic has seen significant growth since last June, with the easing of lockdown restrictions following a steady decline in fresh covid-19 cases, giving more people the confidence to undertake travel.

However, the emergence of the Omicron coronavirus mutant and a subsequent third wave of pandemic in the country and in different parts of the world threatens to derail this recovery.

The decline in demand has seen airlines cut capacity, with domestic market leaders IndiGo trimming their flights by 20%.

The third wave of the covid-19 pandemic could lead to fresh turbulence for air traffic, delaying the domestic aviation industry's recovery to FY24 from FY23, Crisil Ratings Limited said in a recent report.

"This spill-over impact is likely to delay recovery of air traffic from our earlier expectation of it happening in fiscal 2023. However, recovery is expected to be achieved within the early part of fiscal 2024," the report said.

"This is because air traffic is likely to rebound faster this time around, compared with the second wave, when it took from May to November 2021 to recover from about 16% to 85% of the fiscal 2020 traffic," it added.

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ABOUT THE AUTHOR
Rhik Kundu
Rhik writes about the Indian economy and its crucial indicators. He is constantly navigating corporates, decoding policies, and dabbling with everything in between.
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Published: 31 Jan 2022, 05:00 PM IST
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