Domestic air traffic recovery likely by FY23: Report

Domestic air traffic will likely reach its pre-Covid levels by the financial year 2023, while international air traffic will hit pre-covid normalcy only by FY24, Mint reported citing a report by Icra.

“Given that domestic recovery is hampered by sluggish demand from leisure and business travel, and the recovery in international travel is contingent on various government measures for control of covid amid resurgence of variants, as well as the success of mass vaccination, domestic traffic is likely to reach pre-covid levels in FY23 and international in FY24,” Icra’s vice president Anupama Arora told the publication.

Recovery in air traffic is getting a boost from airlines increasing capacity and demand during festive and wedding seasons.

However, the surge in Covid cases along with recent travel curbs announced in some states threatens the recovery of the sector. Adding to the troubles of the sector is rising aviation fuel prices.

Icra expects a year-on-year contraction of 60% in operating income of airports in FY21, because of the steep fall in traffic levels.

Minister of State for Civil Aviation Hardeep Singh Puri said last week that domestic air traffic is expected to be back to the full pre-Covid-19 level by the summer schedule with the traffic seeing a sharp recovery from the July quarter onwards after the resumption of the services post Unlock 1.0.