Indian domestic air passenger traffic increased by 23%

15 Sep 2023 CW Team

Furthermore, capacity deployment in August grew by 10 per cent compared to August 2022 but was slightly lower, down by 1 per cent, when compared to pre-COVID levels from August 2019.

Icra's outlook for the domestic aviation industry is considered 'stable,' given the rapid recovery in domestic passenger traffic during the previous fiscal year and expectations that this trend will continue into the current fiscal year. The industry has also seen improved pricing power, resulting in better yields and a favourable revenue per available seat kilometre (RASK) compared to the cost per available seat-kilometre (CASK) for airlines.

This positive trend is expected to continue, primarily due to year-on-year declines in aviation turbine fuel (ATF) prices since April and relatively stable foreign exchange rates. However, despite healthy passenger traffic recovery, the industry still faces challenges related to elevated ATF prices and rupee depreciation against the US Dollar when compared to pre-COVID levels, both of which significantly impact airlines' cost structures.

Icra noted that the recovery in industry earnings is likely to be gradual due to the high fixed-cost nature of the airline business. The industry is estimated to have reported a net loss of around Rs 170-170.5 billion in FY23 due to elevated ATF prices and currency depreciation. However, this is an improvement compared to the net loss of around Rs 217 billion in FY2022. The net loss is expected to decrease significantly to Rs 30-50 billion in FY24 as airlines continue to witness healthy passenger traffic growth and maintain pricing discipline, following industry consolidation.

In August, India's domestic air passenger traffic increased by approximately 23 per cent year-on-year, reaching 12.4 million passengers, according to credit rating agency Icra. This figure was also 6 per cent higher than the pre-COVID levels observed in August 2019, which stood at around 11.8 million passengers. On a month-to-month basis, there was a 3.2 per cent growth in traffic compared to July, with 12.1 million passengers travelling on domestic routes.Furthermore, capacity deployment in August grew by 10 per cent compared to August 2022 but was slightly lower, down by 1 per cent, when compared to pre-COVID levels from August 2019.Icra's outlook for the domestic aviation industry is considered 'stable,' given the rapid recovery in domestic passenger traffic during the previous fiscal year and expectations that this trend will continue into the current fiscal year. The industry has also seen improved pricing power, resulting in better yields and a favourable revenue per available seat kilometre (RASK) compared to the cost per available seat-kilometre (CASK) for airlines.This positive trend is expected to continue, primarily due to year-on-year declines in aviation turbine fuel (ATF) prices since April and relatively stable foreign exchange rates. However, despite healthy passenger traffic recovery, the industry still faces challenges related to elevated ATF prices and rupee depreciation against the US Dollar when compared to pre-COVID levels, both of which significantly impact airlines' cost structures.Icra noted that the recovery in industry earnings is likely to be gradual due to the high fixed-cost nature of the airline business. The industry is estimated to have reported a net loss of around Rs 170-170.5 billion in FY23 due to elevated ATF prices and currency depreciation. However, this is an improvement compared to the net loss of around Rs 217 billion in FY2022. The net loss is expected to decrease significantly to Rs 30-50 billion in FY24 as airlines continue to witness healthy passenger traffic growth and maintain pricing discipline, following industry consolidation.

Infrastructure Urban

02 Jun 2026

VECV Sales Rise 7.8 Per Cent In May 2026

VE Commercial Vehicles recorded sales of 7,978 units in May 2026, compared to 7,401 units in May 2025, registering growth of 7.8 per cent. This included 7,789 units from the Eicher brand and 189 units from the Volvo brand.Eicher branded trucks and buses reported sales of 7,789 units during the month, up 7.3 per cent from 7,258 units a year earlier. In the domestic commercial vehicle market, Eicher sales rose 9.1 per cent to 7,375 units from 6,758 units in May 2025.Exports declined 17.2 per cent to 414 units from 500 units in the corresponding month last year. Volvo Trucks and Volvo Buses recor..

Infrastructure Urban

02 Jun 2026

Table Space Strengthens DESYN Leadership Team

Table Space has announced strategic leadership appointments within DESYN, its integrated Design and Build business, as it looks to strengthen operations across key enterprise and GCC markets in India. DESYN was launched as a strategic extension of Table Space’s workspace solutions portfolio to meet rising demand for agile, high-quality and rapidly deployable enterprise workspaces.Shruti Ookabhoy has joined DESYN as Executive Director and will lead the Design vertical, focusing on design capability, operational excellence and team development across markets. She brings over 22 years of experi..

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..