Domestic Air Passenger Traffic Improves In Sept 2020

Domestic passenger traffic continued recovery in September, 2020 with sequential improvement of

37%; witnessed an estimated PLF of 63% on 46% capacity deployment, ICRA has stated in its report.

"Post the initial recommencement of operations of the scheduled domestic flights with effect from May 25, 2020 to a limited extent i.e. maximum 1/3rd of their respective approved capacity of Summer Schedule 2020, the Ministry of Civil Aviation (MoCA) permitted increasing the capacity to 45% with effect from June 27, 2020 and further to 60% with effect from September 02, 2020.

While in August 2020, the domestic airlines operated at a much lower capacity-33% of their

August 2019 capacity, the same witnessed a significant increase in September 2020, with the airlines operating at 46% of their September 2019 capacity (39,323 departures in September

2020, as against 86,221 departures in September 2019).

On a sequential basis, the number of departures in September 2020 increased by 37%," ICRA has stated.

The domestic aviation industry had been hard following the complete lockdown seen in the months of March and April. Liquidity squeeze and rising aviation turbine fuel costs have also not helped the industry. Analysts believe that it may be a while before we see a strong recovery in the aviation business like before.