Passenger numbers for domestic air carriers jumped 20.54% in the Jan-March quarter. 120.32-lakh passengers flew in the Jan-March quarter as compared with 99.82-lakh in the same quarter last year. Analysts say the growth is on account of sustained recovery in the air travel industry as corporate and leisure travel is gaining momentum. The hike in passenger traffic is likely to have a positive impact on the financial health of the air carriers, most of which have been reeling under heavy losses for last two years.
Industry watchers say the revival in the economy has resulted in more travel by air. This, together with cost cutting and rationalisation of routes by carriers, has boosted their load factors and improve financial performances. Carriers have also improved their on-time performance. The March quarter has been very good for airlines, which collectively saw a growth of 25% in air traffic. The April-June period also looks promising to analysts since airlines are not adding capacity.
While private carrier has maintained a status quo by securing the highest market share at 26%, its archrival Kingfisher Airlines has secured 23% share. Air India has secured 17.8% share and Chennai-based Paramount has secured 1.3% shares. In the low cost space, Delhi-based Indigo has once again notched up numero uno place at 14.7% market share. Low fare airline SpiceJet has grabbed 11.9%, while Mumbai-based GoAir is able to manage a 5.3% share.