Indian Aviation Soars: Domestic Air Traffic Hits 138.9 Million in May

Domestic air passenger traffic in India grew 5.1% year-on-year in May, reaching 138.9 million, surpassing pre-Covid levels. Credit ratings agency Icra reports a stable outlook for the aviation industry with continued recovery in passenger traffic. Higher yields and stable costs contribute to this optimistic forecast.

Domestic air passenger traffic in India soared by 5.1% year-on-year, hitting an estimated 138.9 million in May, according to credit ratings agency Icra. This figure significantly surpasses pre-Covid levels, marking a 14% increase compared to the same period before the pandemic.

Icra maintains a stable outlook for the Indian aviation industry amid ongoing recovery in both domestic and international air passenger traffic. The industry witnessed improved pricing power, higher yields, and a relatively stable cost environment, factors expected to sustain the momentum into FY2025.

Capacity deployment by airlines in May rose by 6% year-on-year and was 2% higher than the previous month, Icra noted. It projected domestic air passenger traffic for FY24 at around 154 million, a 13% year-on-year growth. International passenger traffic for Indian carriers also registered a robust growth of 24% in the last fiscal year.