On a sequential basis, the number of departures in August 2021 were higher by ~22 per cent, as Covid-19 infections demonstrated a downward trajectory
Domestic aviation passenger traffic has continued to register improvement and the same grew by ~30-31 per cent at around 65-66 lakh in August 2021, compared to ~50.1 lakh in July 2021, signifying a Y-o-Y growth of ~131 per cent.
The airlines’ capacity deployment for August 2021 was around 99 per cent higher at ~57,500 departures, as against 28,834 departures in August 2020.
On a sequential basis, the number of departures in August 2021 were higher by ~22 per cent, as Covid-19 infections demonstrated a downward trajectory.
Kinjal Shah, Vice President & Co-Group Head – Corporate Ratings, ICRA said, “For August 2021, the average daily departures were at ~1,900, significantly higher than the average daily departures of ~900 in August 2020, and higher than ~1,500 in July 2021, though it remains lower than ~2,000 in April 2021. The average number of passengers per flight during August 2021 was 114, against an average of 106 passengers per flight in July 2021. Though the recovery continued in August 2021, there is continued stress on demand, driven largely by the second wave of the pandemic, limiting travel to only necessary travel, while both leisure and business travel have been curtailed due to various state-wide restrictions, despite the decline in infections.”
The Ministry of Civil Aviation (MoCA) permitted increasing the capacity deployment on domestic routes, gradually from 33 per cent, with effect from May 25, 2020, to 80 per cent, with effect from December 3, 2020. However, it reduced the permissible capacity deployment to 50 per cent of pre-Covid levels, with effect from June 1, 2021 due to the resurgence of the second wave of the pandemic. It had again increased the permitted capacity to 65 per cent with effect from July 5, 2021. It has now permitted increasing the capacity to 72.5 per cent with effect from August 12, 2021 until further orders. In addition, the MoCA also increased the minimum and maximum fare band by 10-13 per cent for domestic flights with effect from August 12, 2021 until August 31, 2021.
For August 2021, the international passenger traffic for Indian carriers under the Vande Bharat Mission was estimated at ~3.1 lakh, a sequential growth of ~47 per cent
In ICRA’s view, the price increase may not materially impact the passenger traffic demand as in the current scenario, travel is limited to only necessary travel while both leisure and business travel have been curtailed due to various state-wide restrictions and the spread of the infections. However, it will allow airlines to recoup some part of the increase in ATF prices, thereby cushioning some impact on the airlines’ losses.
While the scheduled international operations have been suspended further till September 30, 2021, under the Vande Bharat Mission (VBM) for evacuation of Indian citizens from foreign countries, which started from May 07, 2020, the international passenger traffic (inbound and outbound) for Indian carriers has been ~42 lakh for the period May 07, 2020 to August 31, 2021.
For August 2021, the international passenger traffic for Indian carriers under the Vande Bharat Mission was estimated at ~3.1 lakh, a sequential growth of ~47 per cent.
As for the Aviation Turbine Fuel ATF prices, until February 2021, they were lower on a Y-o-Y basis while in March 2021, April 2021, May 2021, June 2021, July 2021, and August 2021 prices were higher by 3.0 per cent, 59.8 per cent, 103.4 per cent, 86.3 per cent, 59.7 per cent, 55.3 per cent, respectively, on a Y-o-Y basis. In September 2021, the prices have been higher by 54.6 per cent on a Y-o-Y basis, attributed to the low base of September 2020, when the prices declined Y-o-Y by 32.2 per cent due to the impact of the pandemic.
************************************************************************
Readers
These are extraordinary times. All of us have to rely on high-impact, trustworthy journalism. And this is especially true of the Indian Diaspora. Members of the Indian community overseas cannot be fed with inaccurate news.
Pravasi Samwad is a venture that has no shareholders. It is the result of an impassioned initiative of a handful of Indian journalists spread around the world. We have taken the small step forward with the pledge to provide news with accuracy, free from political and commercial influence. Our aim is to keep you, our readers, informed about developments at ‘home’ and across the world that affect you.
Please help us to keep our journalism independent and free.
In these difficult times, to run a news website requires finances. While every contribution, big or small, will makes a difference, we request our readers to put us in touch with advertisers worldwide. It will be a great help.
For more information: pravasisamwad00@gmail.com