Indian Air Traffic Rises in July Due to Vaccination Drives, Higher Economic Activity

Accelerated vaccination drive, as well as higher rate of economic activity, rose India’s domestic air passenger traffic in July 2021 on a year-on-year basis. According to the International Air Transport Association (IATA), India’s domestic air passenger volume — measured in revenue passenger kilometres (RPK) — was one of the highest amongst major aviation markets such as Australia, Brazil, China, Japan, Russia and the US.

In India, the RPK growth rose by 123 per cent in July when compared to the levels in the like period of 2020.

The country’s domestic available passenger capacity — measured in available seat kilometres (ASK) — was up by over 96.1 per cent.

However, in comparison to 2019 levels, the RPK was down (-) 59.4 per cent.

Besides, ASK was lower by (-) 47.1 per cent in July over the corresponding period of 2019.

Aerospace giant Boeing India foresees accelerated recovery in air passenger traffic as vaccinations rise and Covid restrictions ease. Accordingly, the aerospace major expects a fast-paced traffic recovery on domestic routes followed by overseas ones.

“In the commercial market, while near term pressure due to Covid-19 remains, the recovery is accelerating and many of the key long-term fundamentals remain intact," said Boeing India President Salil Gupte said.

“The pace of recovery is uneven. In the near term, we expect the environment will remain very challenged for many of our airline customers and the industry as a whole as they adapt to this rapidly evolving travel demand."

“In India, domestic traffic is leading the recovery. We’re seeing double-digit monthly improvements in operations as vaccine rates improve and travel restrictions begin to loosen."

According to Gupte, passenger traffic is expected to return to 2019 levels in 2023 to 2024 and a few years beyond that to return to long-term growth trend.

“We still see recovery in three phases. First, domestic, then regional markets such as intra-Asia, intra-Europe, intra-Americas, and finally long haul, international routes."

“Therefore, we expect demand for single aisle airplanes to strengthen near-term as evidenced by our year-to-date orders for the 737 family, and demand for widebody aircraft as international borders open."

“Additionally, we see the demand for India domiciled aircraft to grow ‘4x’ over the next 20 years."

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Besides, he cited that increasing vaccination rates and recent measures by the government to allow 72.5 per cent seating capacity, up from 65 per cent will help the industry in gaining flyers’ confidence.

“Airlines and authorities have taken steps intended to limit Covid-19 transmission, including increased cabin cleaning between flights, passenger spacing and requiring travellers to wear masks both in the airport terminal and onboard the airplane."

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