Domestic air traffic steady in April, up 17% in comparison to pre-Covid levels: ICRA

Commenting on the monthly domestic passenger traffic data for April 2023, ICRA states that numbers for April 2023 is estimated at 129 lakh, similar to that in March 2023, though 22% higher in comparison to 105 lakh in April 2022 and 17% higher than pre-Covid levels of 110 lakh in April 2019. It added that despite a healthy recovery in passenger traffic, the domestic aviation industry continues to face challenges on account of elevated ATF prices and depreciation of the INR vis-à-vis the US$ compared to the pre-Covid era, both of which have a major bearing on the airlines’ cost structure. While the ATF prices have witnessed a sequential decline over the past four months, they still remain at elevated levels as compared to the pre-Covid era. The airlines’ efforts to ensure fare hikes proportionate to their input cost increases will be key to expanding their profitability margins.