Domestic air traffic rises 5.3% in May

IndiGo retains market leadership, though with a decline in loads

Budget carrier IndiGo retained its leadership position in domestic skies with a 31.7 per cent market share in May. However, its loads have been showing a declining trend in the first five months of the year, compared to the same period last year. In comparison, Air India is showing an uptick in its occupancy on a year-on-year basis.

Domestic air traffic was up 5.3 per cent in May, compared to the same month in 2013 with airlines carrying about six million passengers, up from 5.7 million passengers in May 2013. Domestic airline capacity was up 7.5 per cent on a year-on-year basis and demand showed growth.

May is the peak season for travel as it coincides with school and college holidays.

IndiGo retained the No 1 spot among domestic airlines followed by Jet Airways-Jet Konnect, which secured a 21 per cent share and Air India, 18.6 per cent. Data from the Directorate-General of Civil Aviation shows only IndiGo and GoAir have added market share since January at the expense of others. IndiGo's share increased 27.7 per cent in January to 31.7 per cent in May and GoAir’s share rose from 8.4 per cent to 9.8 per cent in the same period. The market share of all other airlines declined.

However, in terms of loads, Air India put up a good show. The government carrier's load factor increased from 74.2 per cent in May 2013 to 79.5 per cent last month. IndiGo had the highest load factors among all airlines (82 per cent) last month. However, IndiGo's load factor fell from 89 per cent in May 2013 to 82 per cent last month. In fact, IndiGo’s loads in January-May 2014 have been lower than in the first five months of 2013. Over the same period, Air India's loads have shown a growth on a year-on-year basis. An industry source said one of the reasons for the fall in IndiGo’s load factors is the expansion in capacity and the airline added nine planes last year. “One reason why we see Air India's loads better than IndiGo in certain months is because Air India flies planes with fewer seats. All of IndiGo's planes have 180 seats and SpiceJet Boeing 737s have 189 seats and both airlines carry more passengers per flight. Air India's planes have a business class seating and thus have fewer seats,” said the source.

IndiGo did not respond to an email query on topic.

“Drop in share is due to modest reduction in capacity vis-a-vis market capacity. SpiceJet load factors have shot up since earlier this year since we introduced the new network on March 30 and is now amongst the top,” said a SpiceJet spokesperson.

“In April and May, traffic has risen five per cent, which is an encouraging trend. This could be an early sign of a revival in demand catalysed by flash sales and promotions,” said Sharat Dhall, president, Yatra.com.

Airline executives, however, remain cautious. “Unless we see some serious cost correction, there will be no revival. Capacity continues to grow at eight-to-nine per cent and demand is growing at four to five per cent. The first half of June has been good for airlines, but once schools and colleges re-open, the occupancy will tank,” said the senior executive with a private airline.

GO INDIGO

• 31.7% Market share of Indigo in May. This was followed by Jet Airways-Jet Konnect with 21% and Air India with 18.6%
• 6 mn Number of passengers who travelled via air in May as against 5.7 mn in May 2013
• 7.5% Increase in domestic airline capacity on year-on-year basis
• 79.5% Air India's load factor in May this year as against 74.2% in the same period last year
• 82% Load factor of IndiGo, highest among all airlines, but 7% decline from May 2013