Wednesday, January 20, 2016

Airline passenger load factor at 84.8% high in the past decade: DGCA data

There is more good news for the domestic aviation sector, which is among the biggest beneficiaries of the falling fuel prices. Recent data from the Directorate General Civil Aviation (DGCA) shows that the current average passenger load factor (PLF), or occupancy, of 84.8% is highest in the past decade. In 2006, India's airline industry had a load factor of 67.6%.

A high passenger load factor is one of the key factors that can enhance revenue growth. Another factor that has strengthened optimism for the sector is upbeat passenger traffi c, which rose by 25% in November 2015. The growth is better than its peers in BRIC nations. In Brazil and Russia, passenger growth in November fell by 8 and 7%, respectively. In China, it grew by 8.4%.
In addition, revenue per kilometre of airlines has been growing in the range of 7-44%. Due to these factors, stocks of low cost carriers such as InterGlobe Aviation and SpiceJet have gained 37% and 60% returns, respectively in the past six months against 3.2% drop in the benchmark Nifty.
20/01/16 Rajesh Naidu & Ashutosh Shyam/Economic Times
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