Indian air cargo volume expected to contract at 17-20% in FY21: ICRA

NEW DELHI : Indian air cargo volume is expected to contract by 17-20% during the FY21 due to the capacity restriction imposed on airlines by the government to contain the covid-19 pandemic, rating agency ICRA said in a statement on Friday. Despite overall cargo volume ramping up faster than passenger traffic since April, a meaningful recovery is likely only in FY22, it added.

“Air cargo volumes have been witnessing a faster recovery as compared to passenger and aircraft traffic since April 2020 despite a 45% contraction in the cargo volumes in H1 FY2021 (April-September 2020) as compared to the corresponding previous period,” the rating agency said.

“The faster recovery in the cargo volumes is because of the trade of the essential supplies majorly in the pharmaceutical, medical equipment and agricultural produce sectors besides the expanding e-commerce business. During the period under consideration, the passenger traffic and aircraft traffic movement declined at a much faster pace, by 86% and 75% respectively,” it added.