Domestic air traffic only 4% shorter than pre-Covid levels in FY23: ICRA

Domestic air traffic was only 4% shorter in FY 2023 (fiscal year) as compared to pre Covid levels, ratings agency ICRA said in a report.

It also stated that the domestic traffic in March 2023 was estimated to be 12% higher than pre-Covid levels and 22% higher as compared to March last year.

“For FY2023, domestic passenger traffic is estimated at around 1360 lakh, a year over year growth analysis (YoY) of around 60% over 852 lakh in FY2022, and only short of around 4%, compared to pre-Covid levels of 1415 lakh in FY2020,” Suprio Banerjee, vice president and sector head - Corporate Ratings, ICRA Limited said.

Also Read:Domestic air passenger traffic nearing normalcy, 59% growth in FY2022: ICRA

ICRA said that the domestic aviation industry continues to witness recovery.

“Domestic passenger traffic for March 2023 is estimated at around 130 lakh, which is 8% higher in comparison to the domestic passenger traffic of around 121 lakh in February 2023, 22% higher in comparison to around 106 lakh in March 2022 and 12% higher by pre-Covid levels of 116 lakh of March 2019,” Banerjee said.

For FY2023, the agency said, the overall airlines’ capacity deployment was higher by 38% as compared to FY2022.

The airlines’ capacity deployment in March 2023 was higher by around 14% than in March 2022 and around 7% higher than pre-covid levels of March 2019.

ICRA estimates that the domestic aviation industry operated at a passenger load factor (PLF) of around 89% in March 2023, against 82% in March 2022 and at around 87% in March 2019 (pre-Covid levels).