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Credit rating agency ICRA in its latest report has said that domestic air passenger traffic in India reached 138.5 lakh in October, marking a 6.3% rise compared to 130.3 lakh in the previous month. It stated year-on-year, domestic air passenger traffic grew by 9.6% in October, with figures 12.8% higher than pre-COVID levels of 122.8 lakh in October 2019.

It stated for the first seven months of current fiscal (April-October), domestic air passenger traffic stood at 932.0 lakh, reflecting a 5.9% year-on-year increase. In the first half this fiscal (H1 FY25), international passenger traffic for Indian carriers reached 162.6 lakh, showing a robust 16% year-on-year growth. Further, it said airlines’ capacity deployment in October 2024 was 7.6% higher than in October 2023 and rose by 5.2% over September 2024.

Besides, it said that the outlook for the Indian aviation industry remains stable, driven by expectations of moderate growth in domestic air passenger traffic and a relatively stable cost environment in FY25. The pace of recovery in industry earnings is expected to be gradual due to the high fixed-cost nature of the business.