Monday, March 20, 2017

Indian aviation industry to report 22-23% passenger traffic growth in FY2017: ICRA

As per the ICRA report, Indian aviation industry is likely to report 22-23% passenger traffic growth in FY2017 supported by ongoing low airfare regime. The airlines are maintaining healthy passenger load factor (PLF) backed by low airfares. However, since the aviation turbine fuel (ATF) prices have been on an uptrend during the year, the impact on profitability of the airlines during Q4 FY2017 is inevitable as average ATF prices during the quarter are 37.9% higher YoY, while the yields continue to remain under pressure.

As per ICRA estimates, the fuel cost per ASKM (CASK) of the domestic aviation industry increased to INR 1.16 in January 2017 from a low of INR 0.82 in February 2016, and the same is expected to increase further in February and March 2017.

According to Anand Kulkarni, AVP and Associate Head, Corporate Sector ratings, ICRA limited, “The Indian Aviation industry has reported YoY passenger traffic growth of 23.2% during 10m FY2017 period and the industry is heading towards completing one of the best years in terms of passenger traffic growth. The domestic passenger growth for last five years stood at 12.9%, 5.3%, 4.6%, 15.5% and 22.1% and the industry is likely to surpass the last year growth rate, notably on a higher base. The traffic growth performance has also been one of the best amongst other key aviation markets in the world.”
20/03/17 Travel Biz Monitor