New Delhi, Dec 7, : Domestic passenger traffic increased 15-16 percent to around 104-105 million in November 2021 compared with 89.85 crore in October 2021.This trend was also reflected in ICRA ‘s year-on-year growth of 64%.The ratings agency also stated that November’s capacity deployment was 49% higher than November 2020.On a sequential basis, the number of departures in November 2021 were higher by 12 per cent, as Covid-19 infections demonstrated a downward trajectory.
“Though the recovery continued in November 2021, demand continues to be subdued from the corporate traveller segment as reflected by the passenger traffic being lower by 19 per cent in November 2021 compared to pre-Covid levels,” said Suprio Banerjee, Vice President and Sector Head, ICRA.
“Moreover, the threat of a new variant, which has pushed the resumption of scheduled international operations, has the potential to derail domestic recovery too, if it becomes a source of fresh round of lockdowns or restrictions in the near term,” Banerjee added.
One major concern that ICRA cited was aviation turbine fuel (ATF) prices, which have seen a sharp increase of 67.3 per cent on a YoY basis till December.This is mainly attributed to increase in crude oil prices.
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