We bring you the “Domestic Airlines Report Card for India” for the month of August, 2016. We take a look at the Number of Passengers carried, Market Share of Each Carrier, Passenger Load Factor and others. (Here is the Report Card for July, 2016)
The total number of passenger carried during the month of August, 2016 stood at 83.81 lakh compared to 67.60 lakh during the same month of the previous year. This resulted in a growth of +24% (YoY).
The total number of passenger carried for the period January to August, 2016 stood at 644.68 lakh compared to 523.55 lakh during the same month of the previous year. This resulted in a growth of +23.1% (YoY).
Indigo Airlines leads the field with a 40% market share – a steady double digit reaching closer to 40% of the market which would mean that 2/5 passengers have traveled via Indigo Airlines.
Indigo Airlines – the market leader with +40% market share, carried 33.41 lakh passengers compared to 23.85 lakh passengers during the same month of the previous year, resulting in a growth of +40%.
Indigo which had placed the largest order book for the A320 Neo with Airbus (80 Airbus A320Neo aircraft were ordered in June, 2011 and another 250 A320Neo aircraft in August, 2015) , has received 6 of the 430 A320s ordered (a meagre 1.4%) with Airbus delivering only 16 of the over 3500 orders received (delivered 0.46% of the order book) as of August, 2016.
The company expects 15% fuel savings by flying A320Neo, compared to the A320 (as per the latest disclosure it has achieved 14.3% fuel savings compare to the A320 Classic aircraft without sharklets). Of the total 111 aircraft, the company operates 107 A320 Classic aircraft without sharklets. (Indigo operates only the Airbus A320 family).
Passenger load factor, or load factor, measures the capacity utilization of public transport services. It is generally used to assess how efficiently a transport provider “fills seats” and generates fare revenue.
Air Asia, Go Air, Indigo, Jet Airways and SpiceJet reported better Load Factor i.e. >80%. Indigo which currently flies to 35 airports reported 82.1% which means that 2/10 seats flown were flown empty (the statistics varies for a Tier 1 city compared to Tier 2 or 3 cities).
The overall cancellation rate of scheduled domestic airlines for the month of July, 2016 has been 0.9%. The Overall cancellation rate is generally influenced by bad weather, unfavorable flight conditions, low visibility, conditions at airports etc.
Nothing in this newsletter is financial advice and should not be construed as such. Please do not take trading decisions based solely on the matter above; if you do, it is entirely at your own risk without any liability to Capital Mind. This is educational or informational matter only, and is provided as an opinion.