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Private Sector | Multi State - India | PID: 203507
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ICRA forecasts a 9-11% year-on-year growth in overall air cargo volumes, reaching around 3.6-3.7 million tonnes in FY2025. This growth will be driven by an 11-13% increase in international cargo and 4-6% growth in domestic cargo.
While international cargo volumes saw a modest 1% rise in H1 FY2024 due to a global economic slowdown and geopolitical tensions, there was a strong 18% recovery in H2 FY2024, largely due to the Red Sea crisis, which disrupted seaborne cargo traffic and boosted air cargo demand.
Vinay Kumar G, Vice President & Sector Head - Corporate Ratings, ICRA, said, “Cargo volumes were relatively less impacted by Covid in FY2021 compared to passenger traffic. Moreover, the recovery was swifter, with cargo volumes reaching 95% of pre-Covid levels in FY2022, compared to 55% for passenger traffic. This was driven by higher international cargo growth due to the export of Covid-related vaccines and increased merchandise exports in FY2022. While cargo volume growth slowed during FY2023-H1 FY2024, it has rebounded strongly over the last 12 months, following the start of the Red Sea crisis. International cargo volumes increased by 18% YoY and 20% YoY during 5M FY2025 and are expected to grow further by 11%-13% YoY, reaching new highs in FY2025.”
| Updated on: 11 - Oct - 2024
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