Himachal Pradesh‘s Chief Minister, Sukhvinder Singh Sukhu, addressed recent speculations surrounding tourism in the state, revealing a significant rise in visitor numbers despite setbacks in the industry. Popular destinations like Shimla, Manali, and Dharamshala observed an influx of tourists, countering rumours of traffic jams in Manali and other areas, which Sukhu dismissed as baseless.
Recently, a few concerns fueled by circulating aerial images of congested hill roads, impacted hotel bookings particularly during the festive season in the state. This resulted in a notable decline in hotel occupancy rates in Shimla compared to previous peak seasons, as reported by the local stakeholders. Reports suggest that Shimla recorded the lowest occupancy rate on this New year’s eve in last 40 years.
As images circulated, opinions diverged: some experts labeled it as overtourism, the others attributed the issue to excessive reliance on private vehicles. A responsible hotel chain owner pointed out the alarming congestion in India’s hill destinations, advocating for a Swiss-model public rail system. Similar concerns echoed in Munnar, he recalled where choked roads pointed to the problem of excessive tourist vehicles. According to the him, while the hilly destinations can accommodate more people, the strain lies in managing vehicles, highlighting the pressing need for alternative transportation solutions.On the other end, responding to the challenges, Sukhu assured the public of the government’s efforts to accommodate tourists, emphasising the commitment to making Himachal Pradesh self-reliant. In Nov 2023, Chief Minister Sukhu introduced the e-taxi scheme as part of the INR 680 crore Rajiv Gandhi self-employment start-up initiative. Sukhu emphasised its role in curbing air pollution, aiming to transform Himachal Pradesh into a green energy state by March 31, while also creating employment opportunities for youth. Moreover, the state is developing infrastructure, planning to install 17 e-charging stations within two months to support e-vehicle adoption.
The Chief Minister of Himachal Pradesh said that infrastructure is being developed as per the modern-day requirements for the convenience of the visitors. He also informed that there were about 9,000 hotels in Himachal and considering the influx of tourists, the operation of homestays is also being regulated, to attract more tourists in the state.
Sukhu also recalled the government’s efficient response during the disaster caused by floods adding that within a span of 48 hours, essential services were temporarily restored. The successful evacuation of 75,000 tourists and 15,000 vehicles underscored the administration’s effectiveness in crisis management, the CM reiterated.Sukhu was speaking while inaugurating and laying the foundation stones for 13 projects totaling INR 197.93 crore in Kullu district on January 1. Among these were significant infrastructure ventures, including a double-lane bridge over River Beas at Raison costing INR 9.07 crore, and a steel truss bridge at Nehru Kund (Bahang) completed with INR 6.44 crore, linking the Burwa and Shanag link roads. Additionally, projects like the INR 7.83 crore Eco-Friendly Market in Marhi Tehsil, Manali, and the INR 54 lakh Way Side Amenities at Solangnalla were inaugurated.
Sukhu underscored the transformative impact these initiatives would have on both local residents and tourists, projecting them as pivotal milestones for the Kullu district’s development. Highlighting the state’s economic progress, Sukhu declared a 20 per cent improvement within just one year.
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Chhatrapati Shivaji Maharaj International Airport (CSMIA) recorded 109% recovery in November passenger traffic compared to the pre-pandemic levels of November 2018 with 4.46 million passengers travelling through the airport.
Additionally, the airport recorded the highest passenger traffic movement in a single day for the month on November 25with 167,132 passengers travelling through CSMIA (with more than 1,20,000 domestic pax movements and more than 46,000 international pax movements).
In another record, on November 11, CSMIA achieved its highest-ever single-day Air Traffic Movements (ATMs) with a total of 1,032 ATMs, shared CSMIA.
Andhra Pradesh airports, including Vijayawada, Visakhapatnam, Rajahmundry, Kadapa, and Tirupati, have accumulated over INR 520 crore losses between 2020-21 and 2022-23. Vijayawada alone posted INR 203 crore losses, followed by Rajahmundry (INR 135 crore), Tirupati (INR 129 crore), Vizag (INR 31 crore), and Kadapa (INR 25 crore). However, Vizag airport managed to turn a profit, reporting INR 2.4 crore in 2022-23 after losses in the previous years.
Additionally, the airport experienced its highest-ever monthly traffic in November 2023, reaching a substantial 4.46 million, with a growth of 13% as compared to November 2022 (3.9 million). With regard to domestic traffic, a staggering 3 million passengers travelled through CSMIA during the month. November’23 also witnessed a total of 28,679 ATMs, a 12% growth compared to November 2022 (25,375). This includes an approximate of over 20,000 domestic and over 7,000 international ATMs, CSMIA shared. In November 2023, Delhi, Bangalore, and Chennai retained their positions as the top domestic destinations for CSMIA, while Dubai, London, and Abu Dhabi continued to be the preferred international choices.
Notably, on the bustling Mumbai – Delhi route alone, CSMIA recorded a substantial traffic of 557,393 pax. Among airlines, IndiGo, Vistara, and Air India were leading in the domestic market share once again, with IndiGo catering to over 1.6 million domestic passengers. Whereas, in the international sector, IndiGo, Air India, and Emirates continued to maintain their leading positions.
CSMIA recently expanded its international connectivity and frequency with services to destinations such as Entebbe, Baku, Bangkok, and Toronto adding to the diverse travel network.
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“The air passenger traffic, which is 14.5 crore today, will grow to 42 crores by 2030 and civil aviation will become a foundation for transportation in the country,” he said after laying the foundation for a new terminal building at Rajahmundry Airport.
Scindia also stated that the capacity at six metro airports (Bengaluru, Delhi, Chennai, Kolkata, Mumbai and Hyderabad) which is 22 crore now, will go up to 42 crore in next five years.
The minister said during the last nine years, 12 new greenfield airports were added, taking the total number to 15. Next year, two new greenfield airports will be ready – one at Jewar next to Delhi and another in Navi Mumbai.
Scindia said the total number of airports, waterdromes and heliports will go up from 149 to 220 by 2030. He mentioned that since Independence, the country had developed only 74 airports but in the last nine years it added another 75 airports, waterdromes, and heliports.
India’s civil aviation minister today said the first phase of construction work of Maryada Purushottam Shri Ram International Airport in Ayodhya will be completed by the end of this month. Jyotiraditya M Scindia also said, the first section of the bullet train project is expected to start in three years.
The minister said in Andhra Pradesh, two new greenfield projects at Bhogapuram and Nellore and a waterdrome at Prakasam Barrage were coming up and he was monitoring the work on a monthly basis. Scindia said Andhra Pradesh had four airports prior to 2014 but it now has two additional airports – Kurnool and Kadapa.
Connectivity from all airports has improved. The air traffic movement from the state which was only 388 in 2014, has grown to 1,164, a 200 per cent increase.
A total of 32 routes were operationalised under the UDAN scheme in Andhra Pradesh. Rajahmundry, which had only one connection in 2014, today has connectivity to three cities. Tirupati is today connected to 10 cities in the country, against just one in 2014. Vijayawada, which was connected to only Hyderabad and Bengaluru, is connected to eight cities in India and also Sharjah.
Visakhapatnam airport, which was connected to only nine cities in the country, is today connected to 14 cities and to Singapore. Kadapa airport, which was not in existence, is connected to four cities while Kurnool airport is connected to three cities.
To be built at a cost of INR 350 crore, the new terminal at Rajahmundry Airport will have an area of 17,029 square metres, which will be four times the size of the existing terminal. It will also serve over 2,100 passengers during peak hours and 30 lakh passengers annually, which is nine times more than the current capacity of the terminal.
Scindia exuded confidence that this new era of connectivity will open up opportunities in local tourism, investment and agricultural trade. He noted that Rajahmundry has been the centre of heritage, culture and tradition for time immemorial and birth place of Telugu language.
Andhra Pradesh airports, including Vijayawada, Visakhapatnam, Rajahmundry, Kadapa, and Tirupati, have accumulated over INR 520 crore losses between 2020-21 and 2022-23. Vijayawada alone posted INR 203 crore losses, followed by Rajahmundry (INR 135 crore), Tirupati (INR 129 crore), Vizag (INR 31 crore), and Kadapa (INR 25 crore). However, Vizag airport managed to turn a profit, reporting INR 2.4 crore in 2022-23 after losses in the previous years.
This airport is spread over 1,200 acres with a runway of 3,165 meters that has the capability to land Boeing 377, and Airbus 321 planes. It has six parking bays and is connected to Chennai, Bengaluru and Hyderabad with 126 flight movements in a week.
With the completion of the new terminal, peak passenger load from the current 225 will go up to 2,100 passengers. There will be three aero bridges, modern connectivity, 28 check-in counters and sustainable features.
On Rajahmundry MP Bharat Margani’s demand for building a cargo terminal, he said once the new passenger terminal is built, the airport will get larger narrow-bodied aircraft. “If there is demand for seafood and plantations for domestic trade, we will certainly think of setting up a cargo terminal,” he added.
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In September, the International Air Transport Association (IATA) announced that the strong post-pandemic passenger traffic trend continued, providing a solid end to the third quarter of 2023.
As per the data, the Asia-Pacific region stood out with a remarkable 92.6 per cent increase in traffic for September 2023 compared to September 2022, continuing to lead in terms of annual improvement. The region also witnessed a capacity increase of 82.1 per cent, and the load factor improved by 4.5 percentage points, reaching 82.5 per cent.
Total traffic in September 2023, measured in revenue passenger kilometers (RPKs), rose by a substantial 30.1 per cent compared to September 2022, and this growth pushed global traffic to 97.3 per cent of pre-Covid levels.
Notably, the domestic traffic reached a new high for the month of September, with a remarkable 28.3 per cent increase compared to September 2022, surpassing September 2019 levels by 5.0 per cent.
International traffic also surged, climbing by 31.2 per cent compared to the previous year, and all markets saw double-digit percentage gains. International RPKs reached an impressive 93.1 per cent of September 2019 levels.
“The third quarter of 2023 ended on a high note, with record domestic passenger demand for the month of September and continued strong international traffic,” said Willie Walsh, IATA’s Director General.
Diving into specific international passenger markets, European carriers reported a solid performance with a 15.7 per cent rise in September traffic compared to September 2022. Additionally, capacity increased by 14.9 per cent, and the load factor slightly edged up by 0.6 percentage points to 85.5 per cent.
Middle Eastern airlines experienced a 26.6 per cent increase in September traffic compared to the previous year. Capacity also rose by 23.7 per cent, and the load factor climbed by 1.9 percentage points to 81.8 per cent.
North American carriers saw an 18.9 per cent rise in traffic for September 2023 compared to the same period in 2022. Capacity increased by 18.0 per cent, and the load factor showed a modest improvement of 0.6 percentage points, reaching 85.6 per cent.
Latin American airlines reported an increase in traffic, with a growth of 26.8 per cent compared to the same month in 2022. September capacity also saw a healthy climb of 24.7 per cent, and the load factor rose by 1.4 percentage points to 85.8 per cent.
In Q2 FY24, traditionally the weakest quarter, the airline reported a profit of INR 8,061 million, excluding foreign exchange loss. Even after considering the foreign exchange loss of INR 6,171 million, the net profit for the quarter aggregated to INR 1,889 million. Compared to the same period last year, the airline saw a significant increase in capacity, with a surge of 27.7 per cent.
African airlines posted a 28.1 per cent increase in traffic for September 2023 compared to the previous year, although they faced a slight decline in the load factor, dropping by 1.0 percentage point to 72.6 per cent.
China‘s domestic market continued to perform well, with a staggering 168.7 per cent year-over-year increase in demand. However, it’s important to note that this growth is measured from a relatively low base in September 2022, when domestic travel restrictions were reintroduced in some Chinese provinces.
Japan‘s domestic traffic rebounded strongly from the impact of typhoons in August, with RPKs rising by 19.9 per cent compared to September 2022.
IATA, representing approximately 300 airlines, covering 83 per cent of global air traffic, compiles statistics based on direct airline reporting and estimates, including data from FlightRadar24 under license. These statistics encompass international and domestic scheduled air traffic for both member and non-member airlines.
Looking ahead, IATA’s Walsh emphasised the importance of preparing the entire aviation value chain to handle the expected demand in 2024. He expressed concerns about supply chain issues in the aircraft manufacturing sector and challenges faced by infrastructure providers, particularly air navigation service providers, due to equipment failures, staffing shortages, and labour unrest.
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According to ICRA‘s latest report, India’s domestic air passenger traffic for September 2023 is estimated at approximately 122.7 lakh passengers, displaying a marginal decrease of about 1.3 per cent compared to August 2023 when it stood at around 124.2 lakh passengers.
Despite this slight dip, the data reveals a noteworthy year-on-year growth of approximately 19 per cent as compared to September 2022, which witnessed roughly 103 lakh passengers. Additionally, September 2023 also surpasses pre-Covid levels in September 2019 by approximately 7 per cent, when the traffic count was around 117 lakh passengers.
For the first half of FY2024, spanning from April to September 2023, the domestic air passenger traffic totaled around 753.79 lakh passengers. This represents a significant year-on-year growth of 20 per cent when compared to the same period in FY2023 (April-September 2022) when the traffic count was around 626.68 lakh passengers. Moreover, this figure is roughly 7 per cent higher than the pre-Covid levels witnessed in the corresponding period of April-September 2019, which stood at 703.93 lakh passengers.
Under this pricing structure, passengers booking IndiGo flights will incur a fuel charge, per sector, based on the sector distance. The decision comes after sharp increase in the Aviation Turbine Fuel (ATF) prices in recent months. The move is likely to prompt other airlines to follow the suit and start charging fee from passengers.
Furthermore, airline operators in September 2023 deployed a capacity that was around 10 per cent higher than the capacity deployed in September 2022. However, it is important to note that the current capacity remains slightly lower, by approximately 0.5 per cent, when compared to the pre-COVID levels of September 2019.In September 2023, it is estimated that the domestic aviation industry operated at a passenger load factor (PLF) of approximately 89 per cent. This is a significant increase compared to September 2022 when the PLF was around 82 per cent and, more interestingly, it is marginally higher than the pre-COVID PLF levels of September 2019, which stood at around 86 per cent.
Additionally, in the fiscal year 2024, Aviation Turbine Fuel (ATF) prices exhibited a sequential decline up until June 2023. Subsequently, there has been a steady increase in ATF prices, with a 5 per cent hike in October 2023. This upward trend is significant as it marks the first YoY increase in ATF prices for FY2024, with a growth of 1.3 per cent in October 2023. This increase is attributed to the rising crude oil prices observed over the past four months.
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There has been a strong resurgence in the Indian aviation market, which observed growth in domestic revenue passenger kilometers (RPKs) and a significant increase in passenger demand, even as post-pandemic recovery in global passenger traffic continued to strengthen in August 2023.
As per data shared by IATA, Indian domestic RPKs soared by 23.2 per cent compared to the same period last year, marking the seventh consecutive month of growth and surpassing pre-pandemic levels.
India, accounting for 2.0 per cent of the world share in the domestic passenger market, also witnessed a 15.6 per cent growth in available seat kilometers (ASK) and an increase in passenger load factor (PLF) by 5.1 percentage points, reaching 83.9 per cent.
According to IATA, the WSS serves as a vital platform for addressing these multifaceted challenges and driving aviation towards its net-zero CO2 emissions objective by 2050. At the Symposium, several critical elements are under discussion to attain net-zero CO2 emissions by 2050. These include climate impact mitigation strategies, where Sustainable Aviation Fuels are anticipated to be the major contributor.
IATA also reported that total domestic traffic for August, showcasing an increase of 25.4 per cent compared to the same month in 2022 and surpassed August 2019 results by 9.2 per cent. This growth was predominantly driven by robust demand in the Chinese domestic market. However, Japan faced disruptions due to Typhoon Khanun, which impacted its domestic air travel market, resulting in a growth rate of 8.7 per cent, slightly lower than the previous month.Global Passenger Traffic reaches 95.7% of pre-Covid levels
Globally, the aviation industry witnessed a strong resurgence, reported IATA, adding that the total traffic for August 2023, measured in RPKs, surged by 28.4 per cent compared to August 2022. Remarkably, this level of global traffic now stands at 95.7 per cent of pre-pandemic levels.
International passenger traffic, on the other hand, climbed by 30.4 per cent compared to the same period in the previous year. All major international markets experienced double-digit percentage gains year-on-year, with international RPKs reaching 88.5 per cent of August 2019 levels.
“Demand for air travel performed well in August. For the year to date, international traffic has increased by 50% versus last year, and ticket sales data show international bookings strengthening for travel in the last part of the year,” said Willie Walsh, IATA’s Director General.
Region-wise, Asia-Pacific airlines continued to lead the regions with a 98.5 per cent increase in traffic compared to August 2022, accompanied by a 5.5 percentage point increase in load factor, reaching 84.2 per cent.
Flights were on average 94 per cent full in September, unchanged on a year earlier. Ryanair expects traffic in its fiscal year to March 2024 to grow by 9 per cent to a record 183.5 million passengers. It set a string of all-time monthly traffic records over the busy summer months and Chief Executive Michael O’Leary said last week that current booking levels were around 4 per cent-5 per cent higher than last year.
European carriers reported a 13.6 per cent rise in August traffic compared to August 2022, with a 1.1 percentage point increase in load factor to 86.8 per cent.
Middle Eastern airlines saw a significant 27.3 per cent increase in August traffic, accompanied by a 3.0 percentage point increase in load factor, reaching 83.1 per cent.
North American carriers witnessed an 18.6 per cent traffic rise in August 2023 whereas the Latin American airlines reported a 26.4 per cent increase in traffic compared to August 2022.
African airlines experienced a 26.1 per cent traffic increase in August 2023 compared to the same month in the previous year.
Paving the sustainable path
Heading into the last quarter of the year, the airline industry is nearly fully recovered to 2019 levels of demand. The focus, however, has not been on getting back to a specific number of passengers or flights, but rather on meeting the demand by businesses and individuals for connectivity that was artificially suppressed for more than two years, stated Walsh.
“Having seen the economic, social, and personal losses when airlines could not fly during the COVID-19 crisis, this industry is determined to secure a sustainable long-term future by achieving net zero carbon emissions by 2050. That was clearly evident at the first IATA World Sustainability Symposium where discussions focused on how to decarbonize. We know that our customers want a world in which they can enjoy the freedom to travel sustainably,” added Walsh, mentioning that the inaugural World Sustainability Symposium was a critical step in aligning policy makers, the aviation value chain and airlines with the concrete steps needed to deliver.
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Different airlines operating from Mangaluru International Airport (MIA) in Karnataka on domestic and international routes recorded good passenger traffic. In the first five months of the present financial year, IndiGo and Air India registered passenger load of 87.5 per cent on the domestic destinations they connect directly.
On international routes, Air India Express and IndiGo recorded 81.7 per cent passenger traffic, a press release issued by MIA said.
Against a seating capacity of 3,21,554 on flights landing at Mangaluru from Bengaluru, Chennai, Delhi, Hyderabad, Mumbai and Pune, IndiGo and Air India had 2,80,739 passengers.
Arrivals from Mumbai saw the highest traffic with 1,12,973 passengers travelling against a seating capacity of 1,23,836. Pune had the least load factor of 69 per cent with 11,078 travellers against 16,062 seats on offer, it said.
Delhi, Bangalore, and Chennai emerged as the top domestic destinations for CSMIA in August 2023. In the international sector, Dubai, London, and Abu Dhabi remained the most preferred destinations. Moreover, the airport witnessed substantial growth in international sectors compared to the previous year. The Independence Day weekend in August saw a substantial surge in passenger numbers.
For domestic flights departing from MIA, Chennai and Hyderabad recorded passenger loads of 89.91 per cent and 89.66 per cent respectively. A total of 10,520 passengers travelled to Chennai against 11,700 seats on offer, while Hyderabad saw 21,370 passengers travel against the available 23,836 seats. Mumbai came third with a load factor of 87.3 per cent with 1,08,695 travelling against 1,23,836 seats on offer. On the international sector, the airlines recorded a passenger load of 81.7 per cent for 1,10,823 passengers arriving from Abu Dhabi, Bahrain, Dammam, Doha, Dubai, Kuwait and Muscat between April and August. The seats on offer for those destinations in these five months were 1,35,626.
The departure load factor for the above destinations from MIA was 83.3 per cent with 1,12,930 passengers travelling against a capacity of 1,35,449.
Arrivals from Dubai to Mangaluru saw airlines ferry 67,538 passengers against a capacity of 76,841, a passenger load of 88.26 per cent. Abu Dhabi was the next busiest, with an arriving passenger load of 85.65 per cent (13,414 travellers against 15,660 capacity).
Abu Dhabi emerged as the most sought-after international destination from Mangaluru, recording a load factor of 90.12 per cent with 14,276 passengers travelling against 15,840 seats on offer.
A total of 1,66,047 passengers travelled in August, both domestically and abroad. The arrival load factor to the 13 destinations was 83 per cent with 79,377 passengers travelling against 96,837 seats on offer.
Departures saw a load factor of 90 per cent with 86,670 passengers emplaning against 96,837 seats on offer. With additional domestic flights scheduled in the upcoming winter schedule, more people are expected to travel to and from Mangaluru, the release said.
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