Air passenger traffic to drop to 6-year low in 2020: ICRA

Domestic air passenger traffic growth is expected to reduce to a six-year low of 4.5 per cent in fiscal 2020 after five years of double-digit growth, according to ICRA.

The temporary suspension of operations by Jet Airways, the grounding of the Boeing 737 MAX aircraft and technical issues with the Airbus A-320 New Engine Option (NEO) have impacted the industry’s capacity and passenger growth, ICRA said in a study.

The study also pointed out that many domestic airlines are focussing on expanding their international routes and fiscal 2020 will witness a muted domestic capacity growth, as measured by available seat kilometre (ASKM) of about 3 per cent during the fiscal.