Indonesian air traffic set to recover faster than expected

Indonesian airlines have expressed optimism that passenger figures on domestic routes are on track to get back to the pre-pandemic level in Q1 2024, nearly a year faster than previously estimated. Indonesian National Aviation Association (INACA) secretary-general Bayu Susanto said the complete recovery of the domestic aviation industry, initially expected for late 2024, was now projected to take place as early as Q1 next year, assuming “the current trend persists”. IATA estimates released on Dec 6 see the Asia Pacific (APAC) airline industry reaching the 2019 level in 2024. Statistics Indonesia (BPS) recorded 52.56m domestic flight passengers in 2022, which is 68.5% of the 76.68m passengers transported in 2019. “The challenges for the recovery of domestic routes [are] high interest rates, which impact the price for plane charters, the rupiah-dollar exchange rate and the high fuel price,” Bayu said Tuesday. He elaborated that airlines’ financial condition had been deeply impacted by the pandemic and that the effect was still felt until now, hampering the recovery. He went on to say that the waiting line for aircraft maintenance and the slow movement of spare parts in supply chains also impacted the recovery pace. For international routes, Indonesian airlines are also looking at faster growth than previously estimated, with INACA now projecting the full recovery in Q3 next year – faster than the initial forecast of 2025.<br/>