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March Sees an Unprecedented Rise in Domestic Travelers Amidst Record High Airfares
The historically lean travel month of March has witnessed a surge in domestic flyers, with almost 1.29 crore travelers recorded by the Directorate General of Civil Aviation (DGCA). This number surpasses those recorded during peak travel months such as October 2023, November, and December of the same year. Interestingly, this March is closest to the all-time monthly domestic air travel high of December 2019, pre-Covid, at 1.3 crore.
Despite the record-high airfares, with over 100 Airbus A320 family aircraft of IndiGo and GoFirst being grounded for months due to the inability of Pratt & Whitney to supply engines and spares, the March 2023 figure shows a 21% increase from the previous year’s 1.06 crore, indicating that travel industries are rebounding even against odds.
Sanjay Kumar, a veteran of the Indian aviation industry, believes that “After early 2023, life is now getting back to normal. All forms of travel are back – holiday, work, visiting friends and relatives and MICE (meeting, incentive, conferences and exhibitions).” According to Kumar, despite the constraints on capacity, the travel industry will experience a stable period of travel and revenue. He also anticipates a “Golden Period” for the travel industry during the upcoming April-June summer months.
Kumar identifies two things that could impact the industry’s growth: oil prices and the rupee-dollar exchange rate. Fortunately, both factors currently remain in a reasonably comfortable zone. He also credits the relief provided by the Reserve Bank of India’s decision not to hike interest rates, which has boosted travel sentiment.
Ultimately, industry experts anticipate that domestic travel will continue to rise, although they concede that the extent of this rise will depend on factors such as fuel prices and the exchange rate.
