In April 2022, the month that saw domestic air traffic take off by 90.5 percent over the previous month, IndiGo managed to attract customers who left peers like Air India and Air Asia, thereby seeing a sharp increase in its market share.
As per a report by ICICI Securities, IndiGo’s growing market dominance was first visible in March 2022 when its share went up by almost 4 percentage points to 54.8 percent.
In the subsequent month, IndiGo's market share expanded to 58.9 percent. IndiGo and Go Air were the only two to gain customers in April, while all other airlines lost market share.
Despite IndiGo's growing dominance, investors are not impressed. The stock closed at Rs 1,645.05, down 2.23 percent from the previous close, on BSE on Wednesday. The scrip hit a low of Rs 1,627.45 around 13:40.
The stock has been on a losing spree and has fallen consecutively for the last two days in a row, underperforming the sector by 0.62 percent.
The report showed there had been an uptick in the average daily domestic traffic, which stood at 3,75,000 for the week ended May 21, 2022, up from 3,68,000 in the previous week.
This comes as a relief as all major airlines, including IndiGo, witnessed a sequential dip in passenger load factor (PLF) in the month of April, as per the Directorate General of Civil Aviation (DGCA).
25/05/22 CNBCTV18.com
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