Indian Domestic Air Travel Soars by Nearly 19 Percent in June - News

The Indian aviation industry is exhibiting indications of recovery, with domestic air passenger volume increasing by almost 19 percent in June. Major airlines such as IndiGo, Air India, Vistara, AirAsia India, and Akasa Air increased their market share during the month, owing to the grounding of budget carrier Go First. 
ICRA, a leading credit rating agency, maintains a stable outlook on the Indian aviation industry due to the rapid recovery in domestic passenger traffic, which is expected to continue in FY2024 as a result of improved pricing capabilities/yields, and a positive revenue per available seat kilometer (RASK)-cost per available seat kilometer (CASK) spread.
As per Directorate General of Civil Aviation (DGCA) data, domestic air passenger traffic reached approximately 12.5 million in June, representing an 18.78 percent increase over the same period last year, indicating a significant recovery in the industry, with traffic exceeding pre-Covid levels by 4 percent in June 2019. Despite the improving trend, the domestic aviation industry faces obstacles such as rising aviation turbine fuel (ATF) prices and currency depreciation, and the industry is expected to incur a net loss of INR 50-70 billion in FY2024. The Indian aviation sector tries to rebuild its strength and provide a positive future for domestic air travel as it adapts to shifting market conditions and embraces consolidation.