SpiceJet gets its highest domestic market share in close to 5 years

By: |
Updated: July 20, 2019 12:43:44 AM

Aviation consultancy firm CAPA India has projected less than 5% y-o-y growth in FY20 for the domestic market.

The domestic passenger growth has been 3.2% y-o-y for the first half of CY19 due to higher fares and grounding of Jet.

Budget carrier SpiceJet captured its highest domestic market share in close to five years at 15.6% during June 2019 as it inducted 30 aircraft of Jet Airways to its fleet.  The Gurugram-based carrier had reported 17.3% share of the domestic aviation market in October 2014.

Spicejet, the second-largest domestic carrier now, added 30 planes mostly Boeing 737s, taking its operational fleet strength to 95. Jet suspended all operations on April 17 due to financial crisis. While IndiGo commanded 48% share of the domestic skies, Air India held 12.9% in June 2019 followed by GoAir at 11.1%, Air Asia and Vistara at 6.4% and 5.4%, respectively, according to the data released by directorate general of civil aviation (DGCA) on Friday.

Domestic passenger traffic growth picked up during the holiday month of June by 6.1% year-on-year.  A total of 12.02 million passengers booked for air travel in June compared to 11.32 million in June 2018. The last month’s traffic growth was the second best in the calendar year 2019 after January, which recorded 9.1% y-o-y increase.

The domestic passenger growth has been 3.2% y-o-y for the first half of CY19 due to higher fares and grounding of Jet. The ministry of civil aviation has allocated vacant airport slots of Jet to rival carriers for operations.

Experts pointed out that domestic airfares have moderated compared to a sharp rise in ticket prices immediately after Jet’s grounding.
“The fares have dropped by 7.5% in June compared to April and May this year. Consequently, our data also indicate a pick-up in overall flight bookings, currently,” an expert said.

According to analysts, Jet had around 1,000 landing and parking slots at various airports with majority being at Delhi and Mumbai. These airport slots were allotted to other carriers – SpiceJet, IndiGo, Air India, Go Air, Air Asia and Vistara – to fill vacant capacities.

All major scheduled carriers witnessed seat occupancy on aircraft between 81.2-94% in June. Aviation consultancy firm CAPA India has projected less than 5% y-o-y growth in FY20 for the domestic market.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.