The Indian aviation industry has witnessed a sequential growth of 33 per cent in October over September 2020, ICRA said on Friday.
The domestic passenger traffic in October rose to 52 lakh passengers. "On a YoY basis, however, domestic passenger traffic declined by 58 per cent," ICRA said. Besides, the capacity deployment in October rose to 52 per cent on a year-on-year basis.
In August, the industry had deployed 33 per cent capacity which rose to 46 per cent in September 2020. Earlier, the Ministry of Civil Aviation had permitted airlines to deploy 60 per cent capacity with effect from September 2.
On aviation turbine fuel (ATF), the ratings agency said it expects November 2020 prices are still lower by 33.1 per cent on a YoY basis.
"The prolonged shutdown of manufacturing activities in several countries and the subsequent impact of the outbreak on the global economic activity will keep the crude oil prices and thus the ATF prices low," Kinjal Shah, Vice President, ICRA said.
Recently the Civil Aviation Minister stated that the cap on the number of domestic flights that Indian airlines are permitted to operate would be increased to 70-75 per cent of their pre-COVID levels as the passenger traffic surges. The ministry had said that the Indian airlines can operate maximum 60 per cent of their pre-COVID domestic passenger flights till February 24 next year due to the prevailing coronavirus situation.
In a press release on Thursday, the ministry said, "MOCA is monitoring traffic everyday, and it is expected that the traffic would further pickup because of the festival season and as passenger traffic increases, the upper cap would be revised to 70-75 per cent of normal capacity in the coming days." The MOCA said 2.05 lakh passengers travelled in domestic flights on November 1. The ministry had informed the airlines about the aforementioned 60 per cent limit through an official order on September 2 but it had not told them the period for which the cap would remain in place.
(With input from agencies)