International traffic reached 79% of pre-Covid levels in June 2022 and is expected to reach 90-92% of the pre-Covid levels by end of FY2023
Domestic passenger traffic recovery stood at 91% of pre-Covid levels in June 2022
Subsequent to the resumption of international commercial operations from March 27, 2022, after a ban of two years, international passenger traffic has registered a steady improvement in the last three months and reached 79% of pre-Covid levels (similar period in FY2020) in June 2022 (April 2022 – 63%; May 2022 – 72%). The same witnessed a healthy M-o-M growth of 8% in June 2022 at 4.4 million. The recovery in domestic passenger traffic declined marginally to 91% of pre-Covid levels in June 2022 (21.1 million) as compared to 98% in April and May 2022. Overall, the passenger traffic stood at 88% of pre-Covid levels in June 2022. Supported by the passenger traffic, the aircraft traffic stood at 96-99% of pre-Covid levels during April – June 2022. ICRA, in its recent report, expects aircraft traffic to display a 45-47% YoY growth and to reach pre-Covid levels during FY2023.
Giving more insights, Abhishek Lahoti, Senior Analyst, Corporate Ratings, ICRA, says, “The steep ramp-up in international traffic during the last three months is supported by opening of major international destinations, easing of travel restrictions and increase in aircraft capacity deployment. Overall, ICRA expects international passenger traffic to reach 90-92% of the pre-Covid levels by end of FY2023 and cross pre-Covid levels in FY2024. The recovery of domestic passenger traffic moderated in June 2022 in line with historic trends. The key reason for lower domestic traffic in June compared to May is due to the end of summer vacation, reopening of schools and consequently reduced leisure travel. Notwithstanding moderation in recovery in June 2022, we expect domestic air travel to recover back to pre-Covid levels in FY2023. The overall passenger traffic is expected to reach 96-97% of the pre-Covid levels (FY2020 levels) to 329-332 million in FY2023 on the back of the resilient domestic passenger traffic and the resumption of international commercial operations.”