Record 17m air passengers last year propel Dhaka airport to Tk2,400cr revenue

Bangladesh's airports saw a record 17.4 million air passengers last year, predominantly international travellers, marking a nearly 23.4% growth from the previous year, resulting in Hazrat Shahjalal International Airport in Dhaka generating the highest revenue of around Tk2,388 crore in FY 23, according to the Civil Aviation Authority of Bangladesh (CAAB).

In FY 22 and FY 21, the airport generated revenues of Tk1,597 crore and Tk942 crore, respectively.

The number of international passengers, comprising both Bangladeshis and foreign nationals, surged by around 2.67 million over the past year, representing an around 30% increase from the previous year and an around 37% rise compared to the pre-Covid-19 period.

Sector insiders point out that the data underscore the expansion of air travel to and from Bangladesh, attributing it to various factors such as record labour exports, increasing educational migration, outgoing medical and leisure tourism, and business travel.

Additionally, they say the growth is a consequence of the country's economic advancement, enhanced affordability for the people, and the government's supportive measures toward the aviation sector.

The growth in the number of air passengers in the country aligns with the global trend, as total traffic worldwide rose by 36.9% in 2023 compared to 2022. According to the International Air Transport Association, global traffic for the full year of 2023 reached 94.1% of pre-pandemic (2019) levels.

Squadron Leader Lutfor Rahman, CEO of US-Bangla Airlines, said that in 2021, the International Air Transport Association predicted Bangladesh would return to pre-Covid-19 levels of air passenger traffic by 2024. However, Bangladesh surpassed this projection sooner than expected.

"That is because our primary passengers are wage earners. They resumed travel to other countries before other tourists and business travellers, naturally leading to an increase in numbers," he said.

"Additionally, the number of Umrah passengers increased last year, as did our tourist arrivals in the Maldives," he added.

"As the number of international passengers increased, we adjusted our flight frequency accordingly. Biman and other airlines also ramped up their operations," he added.

According to CAAB data, the organisation earned about Tk1,911 crore in FY 22, with Tk1,597 crore generated by Hazrat  Shahjalal International Airport alone. The remaining seven airports collectively generated only Tk314 crore in revenue, significantly less compared to the Dhaka airport.

The current capacity of Dhaka airport is 8 million passengers per year, but this number was surpassed last year through the optimization of flight management, according to the authority.

Upon full operation of the third terminal, the airport will be able to accommodate around 22 million passengers annually, according to CAAB.

Currently, Hazrat Shahjalal International Airport in Dhaka hosts operations from 35 airlines, including the two newcomers in 2023, EgyptAir and Flynas, as reported by the airport authority.

Additionally, several new airlines are poised to commence flight operations to and from Dhaka in the near future, including Air China, Air Premia, Fits Air, Ethiopian Airlines, and Royal Brunei Airlines.

Why the surge of international passengers?

Bangladesh sent a record 1.3 million migrant workers last year, marking a 15% surge compared to the previous year, according to the Bureau of Manpower, Employment, and Training (BMET).

Meanwhile, according to UNESCO data, more than 50,000 Bangladeshis go abroad for educational purposes each year.

Bangladesh boasts three international and five domestic airports. In 2023, Dhaka airport handled 9,489,447 international passengers, compared to 7,828,212 in the previous year. Approximately 52% of international departures last year were through this airport.

Additionally, the airport managed 2,183,450 domestic passengers last year, compared to 2,331,063 in the previous year.

Group Captain Md Kamrul Islam, executive director of Dhaka airport, told TBS, "The growth in passenger numbers has been observed across all segments over the past year, including transit. A significant portion of passengers on Biman's direct flights from Dhaka to Toronto and Tokyo originate from neighbouring countries. Additionally, many passengers from other airlines opt to transit through Dhaka airport."

The increase in flight numbers last year was not only because new airlines started flying from Dhaka but also because existing airlines flew more often.

"The national flag carrier, Biman Bangladesh Airlines, has introduced new routes and augmented the frequencies of its existing flights. Likewise, Saudi Arabia has increased its flight frequencies, as have Air India, Vistara, Singapore Airlines, Malaysian Airlines, and Emirates, among others," said Kamrul Islam.

With the inauguration of Terminal-3 operations in October 2024 and the expansion of Biman's fleet, Kamrul Islam anticipates a further increase in passenger numbers.

Local airlines go for fleet expansion to tap int'l passengers

US-Bangla Airlines has recently expanded its fleet with two aircraft, the Airbus A330-300 and Boeing 737-800, thereby becoming the largest airline in Bangladesh by fleet size.

With these additions, the US-Bangla fleet now comprises 23 aircraft, while the national flag carrier, Biman, has 21.

The new aircraft will service routes to Dubai, Sharjah, Muscat, Doha, and Kuala Lumpur. Additionally, US-Bangla plans to deploy the Airbus aircraft on routes to London and Rome, as well as to Jeddah, Riyadh, and Dammam in Saudi Arabia in the future.

The national carrier Biman has been in negotiations with both aviation giants Boeing and Airbus in recent months. Additionally, Biman has decided to launch a direct flight from Dhaka to Rome in March of this year.

NovoAir also has plans to expand its capacity.

"In the short term, we aim to focus on destinations within Asia. Our specific targets within Southeast Asia include Thailand, Malaysia, and Singapore. We plan to commence flights to these countries by 2024," said Mofizur Rahman, secretary-general of the Aviation Operators Association of Bangladesh (AOAB) and managing director of NovoAir, told TBS.

"That is why we have plans to incorporate larger aircraft into our fleet. Our fleet strategy has always been focused on Airbus. Initially, we aim to add three more aircraft," he added.

Foreign carriers currently account for 80% of passenger and cargo transport, underscoring the significant potential for further growth in the Bangladesh air transport industry.

Dispute over domestic passenger data

While CAAB claims that the total number of domestic passengers rose by around 6.10 lakh compared to the previous year, airport sources and local airlines have reported a loss of domestic passengers on various routes.

In mid-2022, with the opening of the Padma Bridge for traffic, there was a significant decline in passenger traffic on the Jashore and Barishal air routes, affecting the airlines.

For instance, Jashore airport handled 1.97 lakh passengers last year, compared to 3.20 lakh in 2020.

Similarly, according to Dhaka airport data, the main airport in the country saw a decrease of around 1.50 lakh domestic passengers last year.

"Domestically, we faced challenges last year. It appears that these challenges persist," Squadron Leader Lutfor Rahman, CEO of US-Bangla Airlines.

Among the airlines affected are the national flag carrier Biman, US-Bangla, and Novoair, all experiencing a decline in passenger numbers on major domestic routes, leading to reduced flight operations, according to airline officials.

NovoAir, a prominent private airline in the country that primarily operates domestic flights, has sold two of its ATR-72 aircraft to Yeti Airlines of Nepal due to the low turnout of domestic passengers.

Regarding domestic passenger data, AKM Faizul Haque, director of Air Transportation at CAAB, told TBS, "In the first six months of the year, the number of domestic passengers decreased due to the decline of flights in Jashore and Barisal routes. However, there was a positive growth in the total number of passengers on other routes. Especially the Saidpur route has seen an increase in passengers this time."

According to Saidpur airport sources, around 2.91 lakh passengers travelled through Saidpur airport in 2023, compared to 2.36 lakh in the previous year.