Domestic air passenger traffic in India reached 138.5 lakh in October, marking a 6.3% rise compared to 130.3 lakh in the previous month, according to a report released on Thursday.
Year-on-year, domestic air passenger traffic grew by 9.6% in October, with figures 12.8% higher than pre-COVID levels of 122.8 lakh in October 2019, according to data from credit rating agency ICRA.
From April to October in the current fiscal year, domestic air passenger traffic stood at 932.0 lakh, reflecting a 5.9% year-on-year increase.
In the first half of FY25, international passenger traffic for Indian carriers reached 162.6 lakh, showing a robust 16% year-on-year growth.
Airlines’ capacity deployment in October 2024 was 7.6% higher than in October 2023 and rose by 5.2% over September 2024, the report added.
“The outlook for the Indian aviation industry remains stable, driven by expectations of moderate growth in domestic air passenger traffic and a relatively stable cost environment in FY2025,” the report said. However, the pace of recovery in industry earnings is expected to be gradual due to the high fixed-cost nature of the business.
ICRA forecasts a net loss for the Indian aviation industry of Rs 20-30 billion in FY2025 and FY2026, up from Rs 10 billion in FY2024. This is attributed to anticipated yield pressures as airlines work to maintain adequate passenger load factors amid persistently high aviation turbine fuel (ATF) prices.
The industry continues to face supply chain challenges, notably with engine failures on Pratt & Whitney (P&W) engines used by several airlines. In FY2024, Go Airlines (India) Limited grounded half its fleet due to faulty P&W engines, which severely impacted its operations.
InterGlobe Aviation Limited (IndiGo) also had over 70 aircraft grounded as of September 30 due to the P&W engine issue, including complications related to powder metal contamination affecting some engine parts.
Overall, as of June 30, 134 aircraft across select airlines—representing 15-17% of the total industry fleet—were grounded, which has impacted overall industry capacity as measured by available seat kilometers (ASKMs), according to the report.
(Inputs from IANS)