Air traffic on smooth turf; registers double-digit growth across all categories: ICRA

With 23.2 million fliers in April 2017, the air passenger traffic in the country has registered a year-on-year growth of 14 per cent over April 2016 which is marginally better than the y-o-y growth witnessed in March 2017. According to an ICRA note, the growth remained broad-based with 19 out of the top 20 airports exhibiting y-o-y increase in passenger traffic in April 2017. In line with passenger traffic, the aircraft traffic also reported a healthy y-o-y growth of 11 per cent. The y-oy growth rate for aircraft traffic was 11 per cent in April 2017, while it was 17 per cent for cargo traffic.

Commenting on the development, Harsh Jagnani, vice president and sector head – corporate ratings, ICRA said, “The growth in air passenger traffic is primarily on account of a pickup in international traffic, which has reported a nine per cent y-o-y growth in April 2017 as against a seven per cent growth in March 2017. The domestic passenger traffic growth remained stable at 15 per cent in April 2017.”

The robust y-o-y growth of 17 per cent in air cargo traffic in April 2017 is another positive for the industry even though the same is marginally lower than 18 per cent growth witnessed in March 2017. Jagnani added, “Cargo volumes have continued to maintain a positive growth trend over the last 18 months, although there have been significant variations in actual growth rates from month to month. The growth volatility is on account of the close alignment of cargo volumes with domestic and international macroeconomic conditions, which undergo significant changes from time to time.”

International cargo traffic, which constitutes over 65 per cent of the overall cargo traffic, reported significantly higher y-o-y growth of 21 per cent as against 11 per cent growth for domestic cargo in April 2017. The growth remained well-spread with 18 out of the top 20 airports reporting positive y-o-y growth in April 2017.