Air traffic pegged at 368 million
The traffic growth is being supported by an increase in business and leisure travel, especially the summer travel. Photo by Arrangement
Chennai: Overall air traffic is expected to grow over 12 per cent to reach 368 million in FY24.
With healthy momentum in the domestic passenger traffic and uptick in international passenger traffic. ICRA foresees an overall growth of around 12-14 per cent in FY2024. Traffic is expected to reach 365-368 million in FY 2024, crossing the pre-Covid levels of FY2020.
Domestic air traffic touched 12.8 million in April 2023. According to ICRA, this is the highest ever monthly domestic traffic.
The traffic growth is being supported by an increase in business and leisure travel, especially the summer travel. The reopening of offices and addition of new routes/ destinations connecting hinterlands and remote locations also has helped the growth of traffic.
The recent bankruptcy by Go First airlines, which had about 7 per cent market share during FY 2023, may have a temporary impact on domestic passenger and aircraft traffic volumes in the coming months.
After the resumption of international commercial operations from March 27, 2022, international passenger traffic has steadily increased and reached 85 per cent of pre-Covid levels in FY 2023. It stood at 5.1 million in April 2023, 92 per cent of pre-Covid levels compared to April 2019. International traffic is expected to recover to pre-Covid levels by H2 FY2024.
With healthy momentum in the domestic passenger traffic and uptick in international passenger traffic. ICRA foresees an overall growth of around 12-14 per cent in FY2024. Further, traffic is expected to reach 365-368 million in FY 2024, crossing the pre-Covid levels of FY2020.
Aircraft traffic stood at 97 per cent of pre-Covid levels and witnessed 43 per cent growth in FY2023. ICRA expects 6-8 per cent growth in aircraft traffic, which is likely to surpass the pre-Covid levels in FY 2024. Cargo volumes are expected to grow 2 to 3 per cent in FY24.
