Domestic air passenger traffic touched 1.25 crore in January this year, an increase of 96 per cent compared to the year-ago period, according to rating agency Icra. However, it said the traffic remained around 2 per cent lower compared to the pre-Covid levels — January 2020. The traffic stood at 64 lakh in January last year.
Icra is maintaining a negative outlook on the Indian aviation industry, reflecting the view that the financial performance of Indian airlines is likely to remain under pressure in the near term, even though the recovery in domestic passenger traffic has been healthy.
While a meaningful improvement in passenger traffic is expected in FY2023, the pace of recovery in the industry earnings will be gradual, it said on Wednesday.
