Domestic air passenger traffic grows 15 per cent in May

India's domestic passenger traffic grew 15 per cent year-on-year to about 1.32 crore passengers. This is 8% higher than the pre-Covid month of May 2019.According to the report of rating agency ICRA, the domestic air passenger traffic for May 2023 is estimated at 131.8 lakh, marginally higher by 2.3 per cent in comparison to 128.9 lakh in April 2023.According to the report, the airlines’ capacity deployment in May 2023 was higher by 1.4 per cent than that of May 2022, reaching the pre-Covid levels (May 2019).International passenger traffic for Indian carriers stood at 239.4 lahks in the financial year 2023, thereby improving from the pre-Covid (FY2020) levels of 227.2 lahks, although 8 per cent lower than the peak levels of 259.0 lahks of FY2019, the Business world reported.Also, for April 2023, international passenger traffic for Indian carriers stood at ~21.8 lakh, higher than the pre-Covid (April 2019) levels of 18.3 lahks by 20 per cent, it said.The agency has also revised its outlook for the Indian aviation industry to be stable from negative in the recent past.Moreover, the industry witnessed improved pricing power, as reflected in the improved yields and thus the revenue per available seat kilometre– cost per available seat kilometre (RASK-CASK) spread of the airlines, the Business World reported."Despite a healthy recovery in passenger traffic, the domestic aviation industry continues to face challenges due to elevated ATF prices and depreciation of INR vis-à-vis US$ as against the pre-Covid era, both of which have a major bearing on the airlines’ cost structure," The New Indian Express quoted Suprio Banerjee, Vice-President & sector head, Corporate Ratings, ICRA, as saying."The airlines’ efforts to ensure fare hikes proportionate to their input cost increases, will be key to expanding their profitability margins," he added.With inputs from agenciesRead all the Latest News, Trending News, Cricket News, Bollywood News,India News and Entertainment News here. Follow us on Facebook, Twitter and Instagram.