In December, domestic air travel reached a record level

Domestic air traffic reached a record high for the month of December and exceeded pre-pandemic levels. This is because more and more people in India are choosing to travel by air, despite rising prices.

Around 13.8 million passengers traveled by air in December, according to preliminary estimates based on daily domestic air traffic data provided by the civil aviation ministry. This exceeds the previous high of 13.2 million passengers recorded in May. This information was published by livemint.com.

According to preliminary data, about 152 million passengers traveled by air in 2023, which exceeded the 144.2 million passengers recorded in 2019.

While the average daily air traffic in December was 440,000 passengers, the highest daily traffic in 2023 was 467,451 passengers on November 25.

The rating agency Icra has a stable outlook for India's aviation industry, given the rapid recovery in domestic passenger traffic. This is while airlines have raised fares.

"Domestic traffic at India's airports has recovered to 98% of pre-COVID-19 levels in FY2023, and domestic traffic is expected to grow by 13-15%. In addition, domestic traffic is likely to reach 111-113% of pre-COVID levels," said Viney Kumar G, Vice President and Head of Corporate Ratings at Icra.

It is also important to keep an eye on fuel prices for aircraft turbines. Fuel accounts for 30-40% of airline costs. Forty-five to sixty percent of an airline's operating costs, including aircraft leases, fuel costs, and a significant portion of aircraft and engine maintenance costs, are denominated in dollars.

Despite the sudden withdrawal of Go First in May and the escalation of supply chain issues, domestic air traffic has shown resilience, contrary to expectations.

CAPA India expects air traffic to reach approximately 155 million passengers during the current fiscal year ending March 31, up 15% year-on-year.