Airlines report 18% jump in passenger traffic in June

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New Delhi | Published: July 19, 2018 4:03:25 AM

The demand for air travel continues to be high as airlines reported over 18% jump in passenger traffic in June. According to the DGCA data released on Wednesday, domestic air passenger increased to 11.32 million last month, compared with 9.56 million in June 2017.

The top five carriers – IndiGo, Jet Airways, Air India, SpiceJet and Go Air – flew with passenger load factor (PLF) between 79.5% and 93.3% during June.

The demand for air travel continues to be high as airlines reported over 18% jump in passenger traffic in June. According to the DGCA data released on Wednesday, domestic air passenger increased to 11.32 million last month, compared with 9.56 million in June 2017.

The top five carriers – IndiGo, Jet Airways, Air India, SpiceJet and Go Air – flew with passenger load factor (PLF) between 79.5% and 93.3% during June. Low-cost airline SpiceJet continued to remain in pole position among all key scheduled carriers on the PLF front at 93.3%.

Mumbai-based Go Air recorded a load factor of 88.6%, followed by market leader IndiGo (88.3%), Air India (80.9%) and Jet Airways (79.5%). Tata Sons’ JVs Air Asia and Vistara recorded an occupancy of 89.6% and 86.4% respectively on their flights during the last month.

The domestic aviation industry witnessed a growth of 16.53% in May this year as spot fares were up 15-20% on key metro routes. Airlines targeted spot fares to offset rising input costs. Experts said ticket prices for bookings made at least 30 days in advance remain down by up to 15% due to aggressive capacity addition by airlines.

“June is one of the best month for domestic travel and it is reflected in the growth. The spot fares were high in the month of June,” said Balu Ramachandran, head of air and distribution, Cleatrip.

Despite the growth momentum, analysts believe that the airlines’ financials continue to remain under pressure. Aviation consultancy firm CAPA India CEO Kapil Kaul said yields have been flat for all carriers. “Rising fuel costs and rupee depreciation have increased input costs for carriers. It has not been passed on to customers entirely, which we will witnessed in Q1(FY19) results,” Kaul said.

Gurugram-based IndiGo witnessed over 22% jump in passengers flown during June 2018 with 4.67 million taking its flights, as against 3.82 million flyers in the same month last year. Go Air increased its passenger count by 31% to 1.05 million. National carrier Air India and SpiceJet grew 13.7% and 7.8%, respectively.

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