Monday, September 24, 2018

IndiGo’s Passenger Load Factor Drops The Most In 18 Months

Even as it expands aggressively, India’s largest airline is struggling to utilise capacity to the fullest.
The passenger load factor of InterGlobe Aviation Ltd., IndiGo’s parent, declined to an 18-month low in August as it added more seats and introduced air routes. A measure of capacity utilisation, the passenger load factor of the airline declined by 590 basis points to 82.8 percent compared with the last month, according to data released by the aviation regulator Directorate General of Civil Aviation.
IndiGo’s capacity utilisation has fallen the most among its peers. At 11 lakh seats in the last two years, the airline contributed the most to fresh capacity addition by Indian operators. This is greater than that added by Air India Ltd., Jet Airways (India) Ltd. and SpiceJet Ltd. together.
Passenger growth in the world’s fastest-growing aviation market slowed to 17 percent—the lowest in three months—in a seasonally weak period. More than 1.13 crore passengers flew in August, according to DGCA data.
Passenger growth was primarily led by IndiGo, GoAir and AirAsia India. However, growth was muted for the other two listed airline companies—Jet Airways and SpiceJet.
24/09/18 Soumeet Sarkar/Bloomberg Quint
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