SpiceJet tops IndiGo in flight occupancy for third straight month
SpiceJet's flight occupancy was 82.5% in August compared with 79.4% in July, while IndiGo's occupancy was 74.8%, compared with 67% in July
New Delhi: SpiceJet Ltd beat bigger rival InterGlobe Aviation Pvt. Ltd-run IndiGo in flight occupancy in August for the third consecutive month, even as IndiGo clinched a record market share of 32.6%, as the air passenger market expanded by 8.30% over the year-ago period.
SpiceJet had the highest flight occupancy of 82.5% in August, compared with 79.4% in July. IndiGo’s occupancy was 74.8%, compared with 67% in July, according to data released by the Directorate General of Civil Aviation (DGCA) on Monday evening.
Other airlines also flew their planes at better occupancy compared with July.
The highest gainer was GoAir at 81.3%, an improvement of 11.6 percentage points from 69.7% in July.
Air India Ltd’s occupancy rate was at 70.3% compared with 69.6% in July, Jet Airways India Ltd’s 70.9% (64.2% in July), Air Costa’s 65.8% (65.5%) and AirAsia India’s 73% (69.8%).
The number of passengers flown rose by 8.30% to 5.69 million in August from a year earlier on the back of discount sales offered by airlines.
“All the airlines have seen a jump in occupancy since everyone has started responding to the competing scenario in the marketplace which was not the case in the month of July when everyone was showing some restraint," said an aviation analyst, requesting anonymity. “This seems to have led to a realignment of the market share. It remains to be seen if the financial performance of the airlines will improve despite the market expanding at 8%."
Globally, a 75-80% occupancy makes profit for airlines.
IndiGo had a 32.6% market share in August, Jet Airways’ market share was 20.1%, Air India’s 16.1%, GoAir’s 10%, SpiceJet’s 19.5%, Air Costa’s 1.1% and AirAsia India’s 0.6%.
The additions to the list of airlines in the county are likely to drive growth further. Tata SIA Airlines Ltd’s Vistara will launch this year-end and six other airlines have been cleared for take-off by the new government.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!