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Domestic passenger traffic to grow 18% in FY18: ICRA

The Indian aviation industry is estimated to grow by 18 per cent during FY2018, ratings agency ICRABSE 0.72 % said on Friday.

“The domestic passenger traffic growth remained healthy backed by improvement in core growth drivers like economic environment and increasing tourism demand,” the ratings agency said.

“The strong demand has pushed the passenger load factor (PLF) to an all-time high of 86.5 per cent in the current fiscal and India remains one of the best performing key domestic aviation markets in the world in terms of PLF.”

As per ICRA, in terms of international routes, the Indian airlines continued to outperform the industry during the current year.

“The international passenger traffic growth from India is estimated to be 10 per cent in FY2018, while the Indian airlines are expected to report a growth of 13.5 per cent during the same period,” it said.

“Increasing capacity deployment by Indian airlines on international routes and growing tourism demand are the key growth drivers. Resultantly, the market share of the Indian airlines on international routes has remained at an all-time high during the current fiscal,” the ratings agency added.