Airlines passenger traffic to rebound in FY22, says Icra

India’s air passenger traffic is expected to rebound in the next fiscal year though it will widely lag the levels seen in FY16, credit rating agency Icra said in a statement on Monday.

“Owing to the low base of FY2021, rising leisure travel and gradual opening up of corporate offices, FY2022 will witness a robust YoY (year-on-year) growth of about 78% in domestic air passenger traffic and about 164% in international air passenger traffic, assuming non-availability of Covid-19 vaccine on a wide scale up to H2CY2021. However, this will still be significantly lower than even FY16 levels,” Icra added.

“If a vaccine is launched earlier with reasonable availability, domestic air passenger traffic could witness a further upside in FY22, with an estimated growth of about 93%, and international air passenger traffic could witness an estimated growth of about 235%.”