Air passenger traffic in January grew at its slowest in 52 months even as the market share of Jet Airways slipped to below that of Air India.
Domestic passenger traffic in January grew in single digits at 9.1% year-on-year. Industry watchers attributed the slowdown to higher fares and weaker demand, surprisingly in a traditionally strong month.
The market share for cash-strapped Jet continued to decline – it was recorded at 11.9%, below national carrier Air India’s 12.2% – for January. This happened last in October 2014 when Jet’s market share had stood at 16.4% against 19.5% of Air India.
The passenger growth in January was the slowest since August 2014 when the passenger traffic volumes had increased by 8.3% y-o-y. Domestic air traffic had grown by 19.6% y-o-y during January 2018.
Over 12.5 million passengers travelled by air during last month, compared with 11.46 million in January 2018, the Directorate General of Civil Aviation (DGCA) said in the data released on Friday.
According to experts, average domestic fares were up 9% y-o-y in January which was reflected in the lower passenger load factors (PLF). All scheduled carriers, with the exception of AirAsia India, reported a 3-3.5% y-o-y decline in plane occupancy. AirAsia India, a Tata Sons and Malaysia-based AirAsia Berhad joint venture, flew with aircraft 84.6% full in January against 80% a year ago. “Rise in fares is being reflected in lower PLF for all carriers,” Balu Ramachandran, head (air & distribution) of Cleartrip, said.
IndiGo, the largest domestic carrier, said the ticket pricing environment improved in the December quarter, especially in the 0-15 booking window.
21/02/19 Financial Express
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Domestic passenger traffic in January grew in single digits at 9.1% year-on-year. Industry watchers attributed the slowdown to higher fares and weaker demand, surprisingly in a traditionally strong month.
The market share for cash-strapped Jet continued to decline – it was recorded at 11.9%, below national carrier Air India’s 12.2% – for January. This happened last in October 2014 when Jet’s market share had stood at 16.4% against 19.5% of Air India.
The passenger growth in January was the slowest since August 2014 when the passenger traffic volumes had increased by 8.3% y-o-y. Domestic air traffic had grown by 19.6% y-o-y during January 2018.
Over 12.5 million passengers travelled by air during last month, compared with 11.46 million in January 2018, the Directorate General of Civil Aviation (DGCA) said in the data released on Friday.
According to experts, average domestic fares were up 9% y-o-y in January which was reflected in the lower passenger load factors (PLF). All scheduled carriers, with the exception of AirAsia India, reported a 3-3.5% y-o-y decline in plane occupancy. AirAsia India, a Tata Sons and Malaysia-based AirAsia Berhad joint venture, flew with aircraft 84.6% full in January against 80% a year ago. “Rise in fares is being reflected in lower PLF for all carriers,” Balu Ramachandran, head (air & distribution) of Cleartrip, said.
IndiGo, the largest domestic carrier, said the ticket pricing environment improved in the December quarter, especially in the 0-15 booking window.
21/02/19 Financial Express
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