India's Airports Could See A Full Recovery Within A Year

Simple Flying

By Gaurav Joshi

Published Mar 29, 2022

The latest figures from relevant authorities seem to suggest that a good recovery is well within reach.

It is estimated that India will have 400 million domestic and international over the next seven to 10 years. Photo: Getty Images

Recent projections from the government and independent agencies paint a positive picture of aviation recovery in India. If forecasts are to be believed, domestic air traffic in the country could almost touch pre-pandemic levels by the same time next year. International traffic will also see a significant upward trajectory, although somewhat slower than domestic by some estimates. Here’s a closer look at the figures that claim that Indian airports could return to pre-pandemic buzz within the next 12 months.

AAI predicts a good recovery

The Airports Authority of India (AAI) believes that the total number of domestic and international passengers visiting airports across the country could hit the pre-pandemic mark by the end of the 2023 financial year.

While passenger footfall dipped by almost 66% in financial year (FY) 2021 to 115 million compared to 341 million in FY20, the AAI estimates that it could reach 339 million by next year. These numbers were recently made available by the Minister of State for Civil Aviation, V.K. Singh.

Looking beyond 2023, the AAI is even more robust in its projections and hopeful that passenger numbers could soar to 448 million by 2025. Of course, it’s crucial to preface these figures by adding that such projections are possible only if COVID is contained, with no major outbreaks in the future.

The airport will see 62 EVs replace its existing vehicles in a phased manner over the next four months Photo: Gaurav Joshi - Simple Flying

ICRA is hopeful, too

ICRA, an independent credit rating agency in India, also came up with numbers that are sure to cheer the aviation sector in the country. It states that Indian airports could finally emerge from the shadows of the pandemic and return to black during 2022-23.

Factors that would fuel such growth include the resumption of scheduled international flights and an increase in tariffs. A report by moneycontrol quotes Rajeshwar Burla, Group Head, Corporate Ratings at ICRA, as saying,

“Resumption of international commercial operations would accelerate the traffic recovery. Southeast Asia, Middle East and Europe are expected to be the major destinations driving the demand. This along with the increase in tariffs at some of the major airports will result in operating income growth of 49-51 percent Y-o-Y in 2022-23.”

“While operating profitability is expected to improve sequentially in 2022-23 to 29-30 percent from 18-19 percent in 2021-22, it is still likely to remain lower than the pre-COVID-19 level of 40 percent with full recovery likely in 2023-23 only.”

Air India Boeing 777 — Photo: Getty Images

The agency expects a jump in the overall passenger traffic by 68-70%, with domestic traffic alone reaching 64-66% in the next year. International traffic, which was recently released from the stranglehold of restrictions, could breach the 100% growth mark.

Overall, the chances of a successful bounce-back remain credibly on the cards, given the passenger appetite and current trends of aviation recovery worldwide.

What are your views about these figures? Are you hopeful that India could approach pre-pandemic air traffic numbers by next year? Do share your thoughts in the comment section.

Sources: Moneycontrol, The Hindu