Even before the pandemic outbreak, the country’s air passenger traffic registered a negative growth of 3-5 per cent in the last fiscal as traffic slowed. Driven by multiple factors, including closure of Jet Airways, according to rating agency ICRA.
The agency, said the de-growth was largely driven by higher airfares in the wake of large scale flight cancellations following shutting down of Jet Airways and overall demand sluggishness. Jet Airways had stopped operating in April last year.
A recovery in domestic traffic is expected only when the commercial air services are restored while the international traffic would take a couple of quarters to come back to the normal level.
The Commercial flight services have been suspended till April 14 amid the 21-day nationwide lockdown to prevent spreading of coronavirus infections.
Icra expects the passenger traffic to de-grow in the range of 3-5 per cent for Fiscal 2020,except for Airport operations and cargo movement.
Noting that the growth in air traffic largely depends on economic cycle in the country, Icra said over the last decade, aircraft traffic movement grew at a CAGR (Compound Annual Growth Rate) of 7.2 per cent between FY 2009 and FY 2019. However, there was a decline in FY09 and FY13.