Gaining altitude: Domestic air passenger traffic up 37% in Sept

NEW DELHI: The Indian aviation industry witnessed continued recovery in domestic passenger traffic during September with a sequential growth over August of 37% to 39 lakh passengers, says ICRA.

The capacity deployment in September at 46% vis-avis September 2019 is a significant increase over the 33% capacity deployed in August. On a year-on-year basis, domestic passenger traffic declined by 66%.

It said it has a negative credit outlook on the Indian aviation industry. It expects profitability of the industry to be adversely impacted in FY21 due to lower revenues and high fixed costs.

"While some airlines have sufficient liquidity and financial support from a strong parentage, which will help them sustain over the near term, those already in financial stress are now facing existential crisis."