InvestorQ : Why has air passenger traffic slowed once again in the month of September?
sarah Leo made post

Why has air passenger traffic slowed once again in the month of September?

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Rashi Mehra answered.
2 months ago
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While domestic passenger traffic did grow in the month of September, the growth was tepid according to data put out by the Directorate General of Civil Aviation (DGCA). For the month of Sep-21, the growth in domestic air passenger traffic was just about 2.9% on a sequential basis over the figure for August. However, at 69 lakh passengers, the yoy growth was 74%, although that may not be exactly comparable due to the low COVID base.

Airline departures in the month of September 2021 were up 54% yoy but the departures were up by just about 6% on a sequential basis. The big pressure came from the prices of aviation turbine fuel (ATF) which soared 78% over the last year on the back of steeply higher crude prices. That impacted the prices and also the flying volumes. Most of the major airlines are under solvency stress and are awaiting the outcome of Air India bidding.

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