New Delhi: A sharp 94.4% yearon-year rise in aviation turbine fuel (ATF) prices and relatively low capacity utilisation of aircraft fleet will continue to weigh on financial performance of Indian carriers in FY22, research and rating firm ICRA has said.
It has noted that the credit profile of most Indian carriers continues to be characterised by a weak liquidity position. Domestic air passenger traffic grew by 24-25% at around 87-88 lakh in October 2021 compared to 71 lakh in the previous month on the back of festive demand and government's permission to utilise 100% of pre-Covid capacity by domestic airlines.
"The airlines’ capacity deployment for October 2021 was around 46% higher than October 2020 (72,000 departures in October 2021, against 49,150 departures in October 2020). On a sequential basis, the number of departures in October 2021 were higher by 18%, as Covid-19 infections demonstrated a downward trajectory," Icra said.
The average number of passengers per flight during October 2021 was 122, against an average of 117 passengers per flight in September 2021.
"Though the recovery continued in October 2021, demand continues to be subdued from the corporate traveller segment as reflected by passenger traffic being lower by 28% in October 2021 compared to pre-Covid levels,” said Suprio Banerjee, Vice President & Sector Head, ICRA.
With effect from October 18, 2021, Ministry of Civil Aviation has allowed restoration of permitted capacity to 100% for the domestic operations. As for scheduled international operations, they have been suspended further till November 30, 2021.
09/11/21 UNI
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