Indian Aviation Industry: Strong Recovery and Reduced Losses

18.10.2023 - 06:11 / skift.com / Virgin Atlantic / Air India

Due to the swift rebound in domestic passenger traffic, credit rating agency ICRA maintains a stable outlook for the Indian aviation industry. The agency anticipates that this recovery will persist through the latter half of the financial year.

ICRA predicts a reduction in the industry’s net losses, estimating them to be in the range of INR 30-50 billion for fiscal year 2024. This marks a substantial improvement compared to the INR 170-175 billion net losses in the preceding fiscal year.

While certain airlines benefit from solid financial backing and liquidity, thus supporting their creditworthiness, others continue to experience financial strain, albeit with some modest improvement compared to recent years, ICRA noted in its latest report.

Domestic air passenger traffic for September was estimated at 12.3 million, 1.3% lower than 12.4 million the month before.

However, ICRA noted that this is growth of 19% from the same period last year and an increase of 7% compared to the pre-Covid levels of September 2019.

Domestic air passenger traffic in the first half of the fiscal year (between April-September) was 75.4 million, year-on-year growth of 20% and 7% higher than pre-Covid levels.

The airlines’ capacity deployment in September 2023 was higher by 10% than that of September 2022 and lower by 0.5% in comparison to the pre-Covid levels.

Between April-July 2023, the international passenger traffic for Indian carriers stood at 9.2 million, a year-on-year growth of 32%, and higher than the pre-Covid levels of 7.2million.

Hospitality technology company Oyo looks to add 750 hotels in the next 3 months in over 35 leisure markets. As the country gears up for the festive and winter tourism season, Oyo is all set to strengthen its presence in the key leisure markets across India.

India’s peak tourism season runs from October to January making it a crucial period for the tourism and hospitality industry.

Where? The key focus markets are Goa, Jaipur, Mussoorie, Rishikesh, Katra, Puri, Shimla, Nainital, Udaipur, and Mount Abu.

Which Brands? The new hotels will be incorporated under Oyo’s premium brands such as Palette, Townhouse, Townhouse Oak, and Collection O.

New Developments: Oyo has also launched an “Excellence Network Program” designed to empower prospective hotel owners in these key markets to make the most of the upcoming tourism season. “The program extends a suite of benefits to hotel owners to cater to the demand dynamics during peak season including access to Oyo’s extensive network of guests, prioritization on the Oyo app, and competitive commission rates,” Oyo said in a release.

Surge in Advance Bookings: Oyo has reported a 28% surge in advance bookings across all key leisure markets compared to same