Thursday, 10 Oct, 2024
By: Yash Gupte
Compared to 63.4 percent in July, IndiGo's market share for August was 63.3 percent. 78.67 lakh passengers were carried by the airline during the month of August. Image Source: IANS
According to the civil aviation watchdog- DGCA, the number of passengers carried by domestic airlines between January and August 2023 was 1006.16 lakhs, up from 770.70 lakhs during the same time the previous year, representing a growth of 30.55 percent annually and 22.81 percent monthly:
According to the data released by the Directorate General of Civil Aviation (DGCA), India's domestic air traffic in August 2023 rose 22.81 percent compared to the same month last year. The number of passenger carried by domestic airlines in India in the month of August stands at 1.24 crore. The number has brought cheers for the aviation industry as the domestic air traffic has returned to pre-covid levels in India. Around 1.19 crore passengers were carried by domestic airlines in July 2019.
According to the civil aviation watchdog- DGCA, the number of passengers carried by domestic airlines between January and August 2023 was 1006.16 lakhs, up from 770.70 lakhs during the same time the previous year, representing a growth of 30.55 percent annually and 22.81 percent monthly:
Source: Directorate General of Civil Aviation
Domestic air traffic in India has surpassed pre-COVID levels for the sixth month in a row as of August. After increasing for three consecutive months following the collapse of GoFirst, which ceased all operations on May 2, the market share of India's largest airline, IndiGo, decreased by 10 basis points in August. Compared to 63.4 percent in July, IndiGo's market share for August was 63.3 percent. 78.67 lakh passengers were carried by the airline during the month of August. During the months of June, May, April, March, and February, the airline's market share increased by 180 basis points, 390 basis points, 70 basis points, 90 basis points, and 130 basis points, respectively.
With a market share of 9.8 percent in August and 12.12 lakh passengers carried, Air India maintained its ranking as the second-largest domestic airline. With a market share of 9.9 percent in July and a total passenger count of 11.98 lakh, the airline's market share decreased by 10 basis points in August. In May, June, and July, Air India currently operated by the Tata-Group increased its market share, largely as a result of the cancellation of Go First. From 9.2 percent in January to 8.6 percent in April, Air India's market share decreased by 20 to 30 basis points per month.
Source: Directorate General of Civil Aviation
After increasing by 30 basis points in July, Vistara's market share increased by 140 basis points to 9.8 percent in August. In that same month, the airline carried 12.17 lakh passengers. After decreasing to 8.1 percent in June from 9 percent in May, Vistara's market share increased to 8.4 percent in July.
The Tata company subsidiary AirAsia India retained its fourth-place in market share ranking. As the carrier carried 8.78 lakh passengers in August, its market share decreased by 40 basis points to 7.1 percent. In terms of market share, AirAsia India rose to the fourth-largest competitor in March and has remained there ever since.
In August, the newly-arrived Akasa Air trailed SpiceJet in terms of market share as the latter suffered with pilot shortages and aircraft groundings. In June, Akasa Air surpassed SpiceJet, and in July, the distance between the two airlines grew. Around 5.27 lakh passengers were carried by Akasa Air in August, earning it a 4.2 percent market share—a decline of 100 basis points from July.
In addition to declining by 100 basis points in June, 40 basis points in May, 60 basis points in April, 70 basis points in March, 20 basis points in February, and 30 basis points in January, SpiceJet's market share has decreased by 20 basis points in July. The airline's market share had decreased steadily for the previous 14 months, according to DGCA data. In February 2022, SpiceJet's market share peaked at 10.7 percent.
Source: Directorate General of Civil Aviation
In August, SpiceJet, Vistara, IndiGo, Air India, and AirAsia India's occupancy rates were 90.9 percent, 91.3 percent, 83.6 percent, 84.5 percent, and 82.4 percent, respectively. The passenger load factor for Akasa Air, the newest airline in India, increased slightly from 86.6 percent in July to 87.3 percent in August.
For the second consecutive month, IndiGo earned the best on-time performance in August. In August, IndiGo had an on-time performance rate of 89 percent at four major airports: Delhi, Bengaluru, Hyderabad, and Mumbai. The following three were Air Asia, Vistara, and Akasa Air. Indian carriers' on-time performance increased 2 to 5 percent in August compared to July. In June and July, India's airlines saw a decline in on-time performance as a result of the country's widespread flooding.
According to the ICRA ratings agency, the domestic aviation industry is currently stable and the fast paced recovery in domestic passenger traffic is expected to continue in coming months. It was noted that the sector has improved pricing power, as seen by the stronger yields and consequently the airlines' revenue per available seat kilometer-cost per available seat kilometer (RASK-CASK) differential. The same is anticipated to continue, Icra said, with the price of aviation turbine fuel (ATF) down year over year since April of this year and foreign exchange rates being largely unchanged.
It was noted that despite a healthy recovery in air passenger traffic, the domestic aviation industry continues to face challenges due to elevated ATF prices and the depreciation of the rupee against the US dollar, when compared to the pre-Covid levels. Both of these factors have a significant impact on the cost structure of the airlines.
The sector is expected to have suffered a net loss of between Rs. 17,500 and 17,500 crore in FY23 as a result of rising ATF prices and the weakening US currency. Even so, it is significantly less than the net loss of over Rs 21,700 crore in FY2022, which was mostly caused by an increase in the airlines' capacity to support their yields without affecting demand. Following the current sector consolidation, the net loss is further anticipated to drastically decline by Rs 3,000–5,000 crore in FY24 as airlines continue to see good passenger traffic growth and uphold price discipline, ICRA said.
