Continued recovery in July

ICRA has revealed that there has been continued recovery in domestic passenger traffic in July 2021 with a sequential growth of 56-57%, as COVID-19 infection trajectory has dropped.

Domestic passenger traffic grew 56-57 per cent at around 48-49 lakh in July, compared to 31.1 lakh in June 2021, signifying a Y-o-Y growth of 132 per cent, says ICRA. The airlines’ capacity deployment for July 2021 was around 90 per cent higher than July 2020 (47,200 departures in July 2021, against 24,770 departures in July 2020). On a sequential basis, the number of departures in July 2021 were higher by 49 per cent, as COVID-19 infections demonstrated a downward trajectory.

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 03, 2020. However, it reduced the permissible capacity deployment to 50 per cent of pre-COVID levels with effect from June 01, 2021 due to the resurgence of the second wave of the pandemic. It has now permitted increasing the capacity to 65 per cent with effect from July 5, 2021, applicable up to July 31, 2021.

While the scheduled international operations have been suspended further till August 31, 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 39 lakh for the period May 07, 2020 to July 31, 2021. For July 2021, the international passenger traffic for Indian carriers under the VBM was estimated at 2.1 lakh, a sequential growth of43 per cent.

As for the ATF prices, until February 2021, they were lower on a Y-o-Y basis while in March 2021, April 2021, May 2021, June 2021 and July 2021, prices were higher by 3.0%, 59.8%, 103.4%, 86.3% and 59.7%, respectively, on a Y-o-Y basis. In August 2021, the prices have been higher.