New Delhi: Rating agency Moody’s on Thursday said that the fall in passenger traffic at Delhi airport over the past two months will negatively impact the operator Delhi International Airport Ltd (DIAL).
According to Airports Authority of India (AAI) data, passenger numbers at Delhi Airport fell by 12% year-onyear in May 2019, after a 15 per cent year on-year decline in April.
The ratings firm said that the decline in passenger traffic was primarily driven by the suspension of Jet Airways’ operations on April 17, which reduced the available seat capacity in the market, and was likely the reason for the reported increase in ticket prices in India. It also said that a slowdown in global GDP growth and the grounding of 737-Max 8 aircraft globally since March, were also factors likely to have contributed to weakening passenger numbers.
“The decline in traffic is credit negative for DIAL because most of its revenue is linked to passenger and aircraft movements at the airport,” said Spencer Ng, a senior analyst at Moody’s, in a statement.
The agency, however, believes that the growth will come back to the airport. “Nevertheless, our base case scenario assumes that the downward pressure on DIAL’s passenger traffic will gradually dissipate in the remaining months of the fiscal year ending March 2020, and passenger traffic will grow at a high single-digit percentage annually over the next 2-3 years,” said Ng.
05/07/19 Economic Times
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According to Airports Authority of India (AAI) data, passenger numbers at Delhi Airport fell by 12% year-onyear in May 2019, after a 15 per cent year on-year decline in April.
The ratings firm said that the decline in passenger traffic was primarily driven by the suspension of Jet Airways’ operations on April 17, which reduced the available seat capacity in the market, and was likely the reason for the reported increase in ticket prices in India. It also said that a slowdown in global GDP growth and the grounding of 737-Max 8 aircraft globally since March, were also factors likely to have contributed to weakening passenger numbers.
“The decline in traffic is credit negative for DIAL because most of its revenue is linked to passenger and aircraft movements at the airport,” said Spencer Ng, a senior analyst at Moody’s, in a statement.
The agency, however, believes that the growth will come back to the airport. “Nevertheless, our base case scenario assumes that the downward pressure on DIAL’s passenger traffic will gradually dissipate in the remaining months of the fiscal year ending March 2020, and passenger traffic will grow at a high single-digit percentage annually over the next 2-3 years,” said Ng.
05/07/19 Economic Times
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