New Delhi: Airline stocks rose in early deals on Friday after data released showed that India’s domestic air passenger traffic recorded its fastest growth in nearly a year in November.
At 10:40 am, shares of InterGlobe Aviation, promoter of India’s largest airline by market size IndiGo, traded 0.2% higher at ₹1,340.70 a piece, having risen as much as 2% earlier in the day. SpiceJet shares traded 1.1% higher at ₹103.65, after touching an intraday high of ₹105
Domestic air passenger traffic for November grew at its fastest pace in 2019, a year in which domestic air travel has been hit by twin blows of closure of Jet Airways India Ltd and an economic slowdown.
Indian airlines carried 12.95 million people in November, up 11.2% year-on-year – the fastest growth since December last year, according to data from the Directorate General of Civil Aviation (DGCA).
Low ticket prices and the onset of the festival season led to a rise in passenger load factor—the proportion of seats filled in a plane—for most airlines. While that of IndiGo improved 6 percentage points month-on-month to 91.4%, GoAir and SpiceJet’s passenger load factor rose 10 percentage points and 3 percentage points, respectively, to 93% each. Vistara, Air Asia and Air India also recorded higher passenger load factors in November at 84%, 87% and 83% respectively.
The jump in air passenger volumes has also come as the combined capacity of airlines rebounded recently after dropping in the wake of the closure of Jet Airways in April.