Domestic air traffic soars to record high in December

Passenger traffic at Indian airports almost completely recovered to pre-covid levels in FY2023 and is expected to improve further in the ongoing financial year

Anu Sharma
Updated1 Jan 2024
Despite the sudden exit of Go First in May and worsening supply chain issues, domestic air traffic has shown resilience. (Bloomberg)
Despite the sudden exit of Go First in May and worsening supply chain issues, domestic air traffic has shown resilience. (Bloomberg)

Domestic air traffic reached a record monthly high in December and has surpassed pre-covid levels as more people in India chose air travel, despite rising fares.

About 13.8 million passengers travelled by air in December, according to a back-of-the-envelope calculation based on daily domestic air traffic data shared by the ministry of civil aviation. That beats the earlier high of 13.2 million passengers recorded in May.

Around 152 million passengers were estimated to have travelled by air in 2023, surpassing the 144.2 million passengers recorded in 2019, provisional figures showed.

While average daily air traffic in December stood at 440,000 passengers, highest daily traffic in 2023 was 467,451 passengers on 25 November.

Ratings agency Icra has a stable outlook on India’s aviation industry, considering the fast-paced recovery in domestic passenger traffic.

This, while airlines increased fares, allowing for improved spread on revenue per available seat kilometre to the cost per available seat kilometre, Icra said in its report.

“Domestic traffic at Indian airports recovered to 98% of pre-covid levels in FY23 and domestic traffic is expected to increase by 13-15%,” said Vinay Kumar G., vice president and sector head-corporate ratings, at Icra.

“Further, domestic traffic is likely to achieve 111-113% of pre-covid levels,” he said.

With tailwinds supporting demand for air travel, it will be important to keep an eye on aviation turbine fuel prices.

Fuel accounts for 30–40% of airlines’ expenses. 45–60% of an airlines’ operating expenses—including aircraft lease payments, fuel expenses, and a significant portion of aircraft and engine maintenance expenses—are denominated in dollar terms.

As on 1 January, jet fuel prices in Delhi were at 1,01,993.17 per kilolitre, registering a 4% decline compared to December and nearly 6% lower than a year earlier.

Despite the sudden exit of Go First in May and worsening supply chain issues, as against the expected improvement, domestic air traffic has shown resilience, aviation research firm CAPA India said in a recent report.

CAPA India expects air traffic to reach around 155 million passengers during the ongoing financial year ending 31 March, increasing 15% over the previous year.

Catch all the Industry News, Banking News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates.MoreLess
HomeIndustryDomestic air traffic soars to record high in December

Most Active Stocks

Bharat Electronics

288.00
05:49 AM | 23 MAY 2024
4.35 (1.53%)

NTPC

371.70
05:49 AM | 23 MAY 2024
-2.2 (-0.59%)

Vedanta

463.70
05:49 AM | 23 MAY 2024
-23.3 (-4.78%)

Power Grid Corporation Of India

314.00
05:49 AM | 23 MAY 2024
-11.8 (-3.62%)
More Active Stocks

Market Snapshot

  • Top Gainers
  • Top Losers
  • 52 Week High

Rail Vikas Nigam

370.60
05:44 AM | 23 MAY 2024
29.05 (8.51%)

Indian Railway Finance Corporation

190.25
05:44 AM | 23 MAY 2024
14.55 (8.28%)

Mazagon Dock Shipbuilders

3,078.00
05:44 AM | 23 MAY 2024
197.75 (6.87%)

Brigade Enterprises

1,268.40
05:43 AM | 23 MAY 2024
75.1 (6.29%)
More from Top Gainers

Recommended For You

    More Recommendations

    Gold Prices

    • 24K
    • 22K
    Bangalore
    75,413.00-582.00
    Chennai
    75,710.00-285.00
    Delhi
    75,562.00-1,027.00
    Kolkata
    75,562.00-953.00

    Fuel Price

    • Petrol
    • Diesel
    Bangalore
    99.84/L0.00
    Chennai
    100.98/L0.23
    Kolkata
    103.94/L0.00
    New Delhi
    94.72/L0.00
    HomeMarketsPremiumFor youGet App