‘High ATF prices, low capacity utilisation to hit performance’
India’s domestic air-passenger traffic grew marginally by 2-3% to about 69 lakh in September as compared with about 67 lakh in August, credit rating agency Icra said on Wednesday.
When compared year-on-year (Y-o-Y), air-passenger traffic growth stood at about 74% in the month under review over September 2020.
Airlines witnessed about 61,100 departures in September as compared with 39,628 in the same month of 2020, it said, adding that on a sequential basis, the number of departures in the month gone by were higher by about 6%, as COVID-19 infections demonstrated a downward trajectory.
The average number of passengers per flight during September was 113, against an average of 117 passengers per flight in August.
Icra said that aviation turbine fuel (ATF) prices have seen a sharp increase of 78.6% on a Y-o-Y basis till October 2021, this coupled with low capacity utilisation of aircraft fleet will continue to weigh on financial performance of Indian carriers in FY22.
Furthermore, the credit profile of most Indian carriers continues to be characterised by a weak liquidity position, it added.
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