Domestic air traffic revival subdued

Despite a stage-gated easing of operational curbs by the Centre, sources in the government suggest that airlines are not flying as often – and to as many stations. While carriers can locally fly 1,500 flights a day, or about 45% of the pre-Covid daily run, airlines continue to operate 750 to 800 flights with an average of about 60% of seats full. This is definitely not the most encouraging sign for an industry buffeted by high fixed and variable costs.

Initially the government, which allowed airlines to restart domestic flights from May 25 after a two month lockdown, had allowed airlines to operate about 33% of pre-Covid flights. However airlines could not even fully utilise the 33% option. “Airlines are not adding flights because people are not flying due to the fear of Covid-19. Unilateral lockdown announced by some states and quarantine norms in some other are among the reasons that further discourage people from taking flights,” stated a government official.

“Demand for air travel will remain muted as long as there is fear of contracting Covid through travel, and as long as there are complicated quarantine requirements. Sudden lockdowns are also dampening demand as people do not want to get stuck once they travel,” noted Sanjiv Kapoor, an industry veteran.