India’s domestic air passenger traffic is estimated to have grown by around 59 per cent year-on-year to 84 million in FY22, although it is still about 40 per cent lower as compared to the pre-pandemic level, credit ratings agency Icra said on Monday. It also expects elevated Aviation Turbine Fuel (ATF) prices, aggravated by geo-political issues, to remain a near-term challenge for the industry and will be a key determinant of profitability for the sector.
On a sequential basis, domestic passenger traffic spiked about 37 per cent to 10.6 million in March, driven by a near to normalcy in airline operations owing to waning of impact of the pandemic, Icra said. The passenger traffic on local air routes was 7.7 million in February 2022, it added.
