According to rating agency Icra Limited, Indian airports will return to profitability after two years in the fiscal year starting April 1, driven by the resumption of international commercial activities and increased fares.

Icra estimates that passenger traffic on domestic and international flights is expected to increase by 68-70% per year to 317-320 million in the next fiscal year.

Domestic passenger traffic is estimated to have an annual growth rate of 64-66% in FY23 to reach pre-covid levels in the next fiscal year.

According to a report from Icra, with the resumption of international commercial operations after two years of the no-fly zone due to the Covid-19 pandemic, international traffic is expected to grow by 100-105% year-over-year (YoY) in FY23 and recovering to pre-Covid-19 pandemic levels in FY24.

It added that passenger traffic in FY22 is estimated to grow by 62-64% year-on-year to 187-189 million, despite the disruption of the Omicron variant, but supported by a healthy vaccination rate.

Indian airlines are authorized to operate some 1,466 international flights per week between March 27 and October 29.