Domestic air passenger traffic momentum to continue this year: Report

The momentum in air passenger traffic is expected to continue and airlines' net loss is projected to be Rs 3,000-4,000 crore in the year ending March 2025, both trends similar to the previous financial year, a report said on Tuesday.

In June, the domestic air passenger traffic was estimated at 132.8 lakh, around 3.7 per cent lower than seen in May but about 6.3 per cent higher compared to the year-ago period.

Rating agency Icra said the outlook for the country's aviation industry is stable amid the continued recovery in domestic and international air passenger traffic, with a relatively stable cost environment and expectations of the trend continuing in FY2025.

"The momentum in air passenger traffic witnessed in FY2024 is expected to continue into FY2025, though further expansion in yields from the current levels may be limited," it noted.

According to its report, the pace of recovery in industry earnings is likely to be gradual owing to the high fixed-cost nature of the business a