India’s Domestic Air Traffic Remains Muted

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The domestic passenger air traffic in India remains subdued. The effect of the second wave of COVID-19 has been as severe as the first wave in 2020. By December last year (2020), the monthly traffic had crossed 7 million passengers – there was a slow recovery from June onwards, but the figures were well below the 13 million a year ago in December 2019. In May, we had reported the drop in air traffic.

Second Wave Affects Passenger Traffic Severely

Though not very apparent, the second wave has been equally disastrous for the domestic aviation industry.

The problem arises when we compare the passenger traffic from January to May for the current year 2021 with the previous year 2019. The passenger traffic has not crossed 8 million in a month this year, well below the 12.7 million last year. Flights were suspended in the last week of March 2020. The second wave struck the country from April 2021 onwards. The traffic in May this year was a paltry 2.1 million passengers.

Year to date (add up figures from January to May) indicated that in both the years 2020 and 2021, the first five months had similar cumulative traffic – around 30 million. Recalling that it took more than six months for partial recovery last year, we expect identical timelines this year. Monthly passenger traffic may reach around 8 million by December 2021. The recovery cycle of domestic air traffic and related industries would get prolonged.

Domestic air traffic was growing at a CAGR of 16.4% between the years 2014-2019. The setback for recovery and growth is very evident. 2020 saw a 57% drop – this year may see similar results.

SpiceJet Reports Losses

There is no wonder why airlines continue their struggle to remain afloat. SpiceJet reported a total income of INR 6,121 crore ($820 million) in FY21, less than half of its revenue of INR 16,206 crore ($2.17 billion) posted in FY20.

International flights remain suspended till July 31, 2021. Passenger movement between countries is curtailed due to COVID travel restrictions.

One positive indication for traffic recovery did come from Delhi airport – which saw a 3-fold increase in passengers in the last week of June over mid-May.

What are your views on the recovery of domestic air traffic in India? Do write to us in the comments section below.