India's Jan air travel growth slows due to higher capacity: ICRA

India's January air travel growth slowed sequentially due to higher capacity, ratings agency ICRA said on Monday.

According to ICRA Vice President Kinjal Shah, the passenger load factor (PLF) last month was lower than 74 per cent in December 2020, due to rise in capacity deployment by 7 per cent.

The Ministry of Civil Aviation had permitted increasing the capacity to 45 per cent, with effect from June 27, 2020, post the initial recommencement of operations of the scheduled domestic flights, with effect from May 25, 2020 to a limited extent.

It further permitted increasing the capacity to 60 per cent, with effect from September 2, 2020 to 70 per cent, with effect from November 11, 2020 and further to 80 per cent with effect from December 3, 2020.


"The average number of passengers per flight during January 2021 was 111, against an average of 134 passengers per flight in January 2020," Shah said.

"Thus, it is expected that the domestic aviation industry operated at a passenger load factor (PLF) of 72 per cent in January 2021, against 86 per cent in January 2020, that too on a low capacity."

In terms aviation turbine fuel (ATF) prices, which is a major operational expense for airlines, ICRA said the prolonged shutdown of manufacturing activities in several countries and the subsequent impact of the pandemic on the global economic activity will keep the crude oil prices and thus the ATF prices low.


The February 2021 prices are lower by 16 per cent on a YoY basis. - IANS