Business News

IndiGo market share flies to 6-month high

Connectivity to new destinations, including Mopa (Goa) and Nashik, helped market leader IndiGo push its market share to a six-month high in March. However, it was low-cost carrier Akasa Air that topped the on-time performance (OTP) chart.  

According to the Directorate General of Civil Aviation (DGCA) data, IndiGo’s market share jumped to 56.8% in March. However, its domestic passenger load factor (PLF) stood at 84%, the lowest among the top three airlines, including Air India and Vistara.

Akasa Air, which was launched in August 2022, saw an OTP of 94.2% in March, beating IndiGo to the top spot. The Mumbai-based airline, which has a fleet of 19 aircraft comprising Boeing 737 Max, also posted a market share of 3.3%, which was its best since debut. The OTP is measured by the DGCA at four metro airports — Bengaluru, Mumbai, Delhi and Hyderabad. At 92%, IndiGo slipped to the second spot in the OTP ranking after holding on the spot since November 2022.

Vistara followed with 83.7% and Air India at 82.1%.Wadia Group-controlled Go First exited March with the worst market share in several months at 6.9%. Its operations continue to be marred by grounded planes that are waiting for replacement engines. Its OTP continued to languish at the bottom of the table at 49.2%, below the government-controlled Alliance Air. The number of passengers carried in March rose 21% year-on-year (y-o-y) to 1.28 million and 52% y-o-y for the January-March quarter to 3.75 million, according to the data shared on Tuesday.

Suprio Banerjee, vice president and sector head, corporate ratings, Icra, said, “The airlines’ capacity deployment in March 2023 was higher by about 14% than in March 2022 and by about 7% higher than the pre-Covid levels of March 2019.”Though there persists an overhang of supply chain issues, the Indian aviation industry is expected to add around 135 new planes, including those ordered by Air India and Akasa Air, in FY24, according to CAPA India.

While the December quarter was a record quarter for the industry in terms of revenue growth and margin boost, the March quarter is expected to be robust but on the same lines as the December quarter, say airline officials.“Despite a healthy recovery in passenger traffic, the domestic aviation industry continues to face challenges on account of elevated ATF prices and depreciation of the rupee against the US dollar, both of which have a major bearing on the airlines’ cost structure,” Banerjee added. 



About Author

Leave a comment

Your email address will not be published. Required fields are marked *

You may also like

Business News Digital Transformation

IRCTC adds new buy now, pay later option: Check details

Indian Railways Catering and Tourism Corporation (IRCTC), has partnered with the CASHe to offer a Travel Now Pay Later (TNPL)
Business News

Inox Leisure Q2 reported a net loss of Rs 40.37 crore , revenue up at Rs 374.12 crore.

New Delhi: Multiplex chain operator Inox Leisure Ltd on Wednesday reported a narrowing of its consolidated net loss to Rs
Wordpress Social Share Plugin powered by Ultimatelysocial
error: Content is protected !!