The start of the second half of 2023 for India’s domestic air travel has been positive. The country’s aviation watchdog, the DGCA, has released its data for the month of July, and the numbers are encouraging, suggesting that the appetite for air travel in the country is on a steady rise even in months that are traditionally considered weak.
25% monthly increase
According to the DGCA, the monthly growth in air passenger numbers in July was 24.68%. So far this year, more than 88 million people have flown domestically compared to 67 million last year, registering an annual growth of 31.72 %.
In terms of market share, much of that traffic volume came from India’s largest carrier IndiGo which now has a market share of 63.4%. Air India was a distant second in July with a share of 9.9%, while Vistara managed to get the third spot with 8.4%.
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Next was AirAsia India, with a market share of 7.5%, and with that, the total share of the Tata Group airlines was 25.8%. When IndiGo is added to it, these two blocks of airlines command a total of almost 90% of the Indian market.
Next on the list was Akasa Air, with a share of 5.2%. This was the second consecutive month in which Akasa beat SpiceJet, which had a share of 4.2%. Hopefully, as it adds more planes to its fleet in September, it can recapture some of the market.
IndiGo was the most punctual
IndiGo also managed to have the most timely departures in July with an on-time performance (OTP) of 86.8. The airline now has more than 320 planes in its fleet, miles ahead of its competitors. With a huge presence across the country, quite a few of which are exclusive routes, the airline still managed to beat all other airlines in punctuality, highlighting its operational efficiency.
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Next on the list was Vistara with an OTP of 83.6, followed by AirAsia India with 83.2. Akasa Air, Air India, and SpiceJet were at the bottom this time with OTPs of 80.6, 70.2, and 65.4, respectively.
While SpiceJet may not perform very well on most parameters, it continues to have the highest passenger load factor, and July was no exception. The carrier registered a load factor of 88.9 in July, with Akasa Air not too far behind at 86.6.
Growth likely to continue
The first half of the year went mostly well for all airlines, with many declaring encouraging financial results. IndiGo reported its highest quarterly profit of $373 million, and even SpiceJet had a profitable Q1 of almost $25 million in net profit.
The Tata Group airlines posted a consolidated net loss for the previous year, but much of it was impairment charges for Air India’s old aircraft that amounted to ₹51 billion ($615 million).
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India’s second quarter of July-September is traditionally a lean period for the aviation sector, so July’s numbers suggest an encouraging trend. The second half of the year, with its prominent festivals and the holiday season, will likely keep the momentum going for the Indian carriers, with hopefully more quarterly profits in store.
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