After six years of monthly yoy growth, the domestic passenger traffic has witnessed the first yoy de-growth of 4.2% to 109.95 lakhs in April 2019. The last monthly yoy de-growth in the domestic passenger traffic was witnessed in June 2013.
As per ICRA note, this is primarily attributable due to adverse impact on the industry capacity which has been hit hard due to the grounding of aircraft of Jet Airways (India) Limited, starting February 2019 (due to liquidity constraints) and eventual discontinuation of its operations with effect from April 18, 2019.
The consequent increase in airfares due to the demand-supply imbalance has impacted the industry passenger load factors (PLFs). During April 2019, all airlines, except GoAir, have reported a yoy decline in PLFs. Overall, the domestic passenger traffic growth for January 2019 to April 2019 has been a muted 2.5%, significantly lower than the 24.6% growth witnessed during January 2018 to April 2018 period.
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