“For FY2023 (FY refers to April 2022-March 2023), domestic passenger traffic is estimated at ~1360 lakh, a YoY growth of ~60% over 852 lakh in FY2022, and only short of ~4%, compared to pre-Covid levels of 1415 lakh in FY2020. The domestic aviation industry continues to witness recovery, with domestic passenger traffic for March 2023 estimated at ~130 lakh, ~8% higher in comparison to the domestic passenger traffic of ~121 Lakh in February 2023, 22% higher in comparison to ~106 lakh in March 2022 and 12% higher by pre-covid levels of 116 lakh of March 2019.
For FY2023, the overall airlines’ capacity deployment was higher by 38% as compared to FY2022. The airlines’ capacity deployment in March 2023 was higher by ~14% than in March 2022 and ~7% higher than pre-covid levels of March 2019. It is estimated that the domestic aviation industry operated at a passenger load factor (PLF) of ~89% in March 2023, against ~82% in March 2022 and ~87% in March 2019 (pre-Covid levels).
Despite a healthy recovery in passenger traffic, the domestic aviation industry continues to face challenges on account of elevated ATF prices and depreciation of INR vis-à-vis the US$, both of which have a major bearing on the airlines’ cost structure. The airlines’ efforts to ensure fare hikes proportionate to their input cost increases will be key to expanding their profitability margins.”
