mumbai domestic passenger traffic reached around 61 and international passenger traffic touched 23 of precovid level in january this year said rating agency icra with the increase in the domestic airlines capacity to 80 of precovid levels in december 2020 from 33 in may 2020 the recovery in the domestic aircraft traffic has been gradual reaching 73 of previous year level in january 2021 said the report but domestic traffic is expected to reach precovid levels only in fy2023 the recovery in the domestic passenger traffic was gradual in line with the phased reopening of economy the passenger traffic recovery in recent months which reached 152 million in january 2021 is supported by increase in capacity of airlines travel during festive and wedding season some resumption in travel to key leisure destinations with onset of fatigue due to work from home is also visible the report saidbut in ten months of fy2021 the aircraft traffic remains lower by 60 yoy and the passenger traffic by 72 yoy it said anupama arora vice president icra said we expect passenger traffic to grow by around 133 in fy2022 and 14 in fy2023 after a contraction of 63 in fy2021domestic recovery is hampered by sluggish demand from leisure and business travel the domestic traffic is likely to reach precovid levels in fy2023 and international in fy2024 she saidthe recovery in international travel depends on various governments measures to keep covid variants in check and secondly success of mass vaccination she addedon the cargo front the cargo volumes witnessed faster recovery compared to passenger traffic reached 89 of previous year level in january 2021 domestic cargo volumes reached 91 and international 88 of previous year this is due to the trade of essential supplies majorly in the pharmaceutical medical equipment and agricultural produce sectors besides the expanding ecommerce business the cargo volumes are likely to grow by around 36 in fy2022 and 6 in fy2023 after a contraction of 25 in fy2021 reaching precovid levels in fy2022 icra report saidspeaking about airport finances arora said significant contraction is likely in operating income oi by 60 yoy in fy2021 due to the steep correction in the traffic levels although the airport operators implemented various cost cutting measures the decline in the oi and lower absorption of overheads is expected to result in operating losses at 32recovery in traffic in fy2022 is expected to result in an increase in oi by 85 but lower than fy2019fy2020 levels while the ebidta is expected to improve in fy2022 it is likely to remain moderate at 18 when compared to historic levels of around 40 she said adding that operating losses in fy2021 are likely to result in weak debt coverage metrics however liquidity remains adequate to meet debt obligationsliquidity profile of airports would vary basis the extent of ramp up in traffic ability to monetise real estate and their ability to secure timely refinancing arora said