In a reflection of the evolving dynamics within the aviation sector, the domestic air passenger traffic for January 2024 has shown resilience, marking a 4.5% increase compared to the same period last year. However, this figure represents a marginal 5% decline from December 2023’s robust performance, as reported by the esteemed rating agency ICRA.
According to ICRA’s estimates, January 2024 witnessed a surge in domestic air travel, with an estimated 125 lakh passengers taking to the skies. This figure not only surpasses the previous year’s statistics but also demonstrates a commendable 3% uptick from the pre-pandemic levels of January 2020, when the industry recorded 127 lakh passengers.
The cumulative data for the period spanning April 2023 to January 2024 paints a picture of steady growth, with domestic air passenger traffic standing at 1,276.35 lakh. This represents an impressive year-on-year increase of 15% over the corresponding period in the previous fiscal year, which recorded 1,110.31 lakh passengers. Moreover, it signifies a resilient recovery, with a 5% surge over the pre-Covid levels witnessed during April 2019 to January 2020, totaling 1,213.85 lakh passengers.
A crucial metric indicating the industry’s health, the passenger load factor (PLF), surged to 91% in January 2024, exhibiting a notable improvement from both January 2023’s 85% and the pre-pandemic levels of January 2020, which stood at 86%. This upward trajectory underscores the growing confidence among travelers, despite the ongoing challenges posed by the pandemic.
However, amidst the encouraging signs of recovery, the aviation sector continues to grapple with fluctuating fuel prices, which account for a significant portion of airline costs. The Aviation Turbine Fuel (ATF) prices witnessed a tumultuous trajectory throughout the fiscal year 2024. After experiencing a sequential decline until June 2023, the prices began to rise steadily until October 2023. Subsequently, they fluctuated, experiencing a 6% decrease in November 2023, followed by 5%, 4%, and 1% declines in December 2023, January 2024, and February 2024, respectively.
The intricate interplay of these factors underscores the dynamic nature of the aviation industry, as it navigates through the complexities of post-pandemic recovery. With cautious optimism, stakeholders remain vigilant, closely monitoring market trends and adapting strategies to ensure sustained growth and resilience in the face of evolving challenges.
