Tuesday, July 11, 2017

Domestic air traffic tops 10-mn-mark for first time in May: ICRA

Mumbai: The domestic air passenger traffic in India crossed the 10-million-mark (in a single month) for the first time in the history of Indian aviation during the month of May 2017. This was due to peak season demand, whereby the passenger load factor (PLF) for the domestic aviation industry touched a new high of 88.9 per cent, the highest over the last seven years, a note by rating agency ICRA said.

According to an ICRA note, with the planned expansion by existing airlines and scale-up by new airlines, the capacity addition in the industry is likely to remain healthy in the current year, despite the industry capacity growth (measured in available seat kilometers – ASKMs) being moderate at 14.9 per cent in May 2017.

The moderation in supply growth is likely to have benefited airline yields to some extent in Q1 FY2018. Further, sequentially stagnant aviation turbine fuel (ATF) prices are expected to provide support to airline profitability in the quarter, the note added.
11/07/17 Business Line