Saturday, August 24, 2019

Worst July For Air Passenger Traffic In At Least Six Years

Air passenger growth slowed in July amid a prolonged slowdown in the economy. The number of passengers flying Indian airlines grew at 3 percent year-on-year last month, the worst pace in July in at least six years, according to BloombergQuint’s calculations based on the data from Directorate General of Civil Aviation.That compares with the 18 percent monthly average passenger growth in the last five years. Nearly 1.19 crore Indians took to the skies in July this year, the data showed. While the overall passenger growth is in single digit, yields—a measure of average fare per passenger per kilometer—too, have come down to last year levels, according to Santosh Hiredesai, research analyst at SBICAP Securities. “This means that there is some slowdown in the sector. Generally, lower yields should be complemented by higher passenger growth rate or vice versa to suggest that the sector is growing well.”
SpiceJet Ltd. continued to report faster passenger growth that market leader InterGlobe Aviation Ltd. for the third straight month. Also, smaller airlines grew faster than larger peers in July.

Here’s how the year-on-year passenger growth of major Indian airlines fared in July.

- The number of passengers flying IndiGo grew at the slowest pace in five months at 17 percent. -SpiceJet’s passenger growth stood at 29 percent. -Passenger growth of Air India stood at 3.4 percent—the slowest in three months.
-GoAir’s passenger growth stood at 29 percent. -AirAsia’s air passenger growth stood at 38
-Passenger growth of Vistara stood at 29 percent—the highest in nearly two years.
23/08/19 Soumeet Sarkar/Bloomberg|Quint
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