In the air: Note ban pulls down passenger traffic growth by 12%
The impact of the note ban is in the air, literally.
Demonetisation has slowed down passenger traffic growth in November to 19% from 22% in October, according to a report by domestic rating agency Icra. Airlines flew 22.6 million passengers in November.
Air cargo traffic growth fell to 7% in November, compared to 14% in the previous month, the report added.
During the first eight months of the current fiscal, passenger traffic has grown 19%, aircraft traffic 15% and air cargo traffic 9%.
“The slowdown is cargo traffic can be attributed to the slowdown in economic activities following the note ban,” said Harsh Jagnani, vice-president, Icra.
The government had, on November 8, denotified around ₹20.51 lakh crore worth of ₹500 and 1,000 banknotes, which constituted 86% of the total currency in circulation.