Go first bump subsides: Airline average daily load factor below 90% in July

The average daily load factor of each major Indian air carrier dipped below 90 per cent in July, after two months, according to the data from the Ministry of Civil Aviation, which has been reviewed by Business Standard.

Following the suspension of all flights from Go First from 3 May onwards, the passenger traffic was rerouted to other carriers. This shift helped these airlines achieve over 90 per cent load factors in both May and June. However, with the onset of the monsoon season, domestic traffic has now seen a reduction.

The average daily domestic passengers handled by the carriers in July fell by 5.6 per cent month-on-month to 393,990, signifying a slowdown during the lean season. Correspondingly, the average daily domestic flights operated by the carriers also decreased slightly by 0.28 per cent month-on-month, with the carriers managing 2,792 flights in July.

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Meanwhile, the international traffic remained more stable in July. The daily international passengers averaged only a minor reduction of 0.34 per cent month-on-month, landing at 183,660 according to the ministry's data.

As per the data, Vistara recorded the highest load factor among all airlines at 89.17 per cent in July. Following closely was Akasa Air with an 88.98 per cent load factor. Air India and SpiceJet recorded load factors of 88.7 per cent and 88.23 per cent respectively, in July.

In May, these high load factors had pushed airfares to such an extent that Civil Aviation Minister Jyotiraditya Scindia felt compelled to convene a meeting with airlines. In this meeting, he urged them to self-monitor ticket prices, particularly in the upper fare bands.

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Last month, the Directorate General of Civil Aviation (DGCA) approved Go First's plan to resume flights, subject to the outcomes of pending court cases and the availability of interim funding. However, Go First has yet to resume its flights.