Domestic air travel hits Rs 150.4 million in 2023-24

Domestic air passenger traffic likely experienced an annual growth of 13 percent, reaching approximately 150.4 million in 2023-24, with the aviation industry's net loss expected to have decreased to Rs 30 to 40 billion during the same period. According to the report released by credit rating agency Icra, it was mentioned that the ability of airlines to raise yields proportionate to their input cost increases would be crucial for expanding their profitability margins. Additionally, supply chain challenges and engine failure issues were noted as near-term headwinds. For the fiscal year 2023-24, it was estimated that domestic air passenger traffic would be around 154 million, representing a Year-on-Year (YoY) growth of approximately 13 percent. The report stated that domestic air passenger traffic in FY2024 surpassed pre-Covid levels, which were around 142 million in FY2020. Furthermore, for March 2024, domestic air passenger traffic was estimated at around 135.2 lakh, showing a 6.9 percent increase compared to approximately 126.4 lakh in February 2024. Moreover, it experienced a growth of about 4.9 percent on a YoY basis. The report also indicated that the country's aviation industry is anticipated to report a significantly reduced net loss of Rs 30-40 billion in FY2024 and FY2025 compared to Rs 170-175 billion in FY2023. AIX Connect, Air India, InterGlobe Aviation, Tata SIA Airlines, and SpiceJet were mentioned as the key players in the industry.