- 21 Mar 2023
- ICICIdirect Research
India's domestic air passenger traffic gradually inching near pre-Covid level
News: India's domestic air passenger traffic grew 56.82 per cent to 1.20 crore in February over the same month last year, as per the latest data released by the Directorate General of Civil Aviation (DGCA). On a pre covid level (Feb 2020) , recovery rate was around 98%. For January- February 2023 domestic air traffic grew by 74.5% as Indian airlines carried 2.46 crore passengers compared to 1.41 crore during the corresponding period of previous year.
Views: The increased air passenger traffic signifies improvement in business and leisure travellers and is positive for the hotel industry. With increased tempo of air travellers, hotels could witness an increase in their occupancy rates which would result in good growth in revenues. Further increased occupancy levels will aid in maintaining or improving the room realisations thereby providing positive momentum to the margin profile.
Impact: Positive