IndiGo market share zooms to 61.4 per cent due to rise in demand

Akasa Air, one of India’s newest airlines, registered a 0.8 percentage point increase in its market share to 4.8%.
IndiGo Airlines. (Representational Image | PTI)
IndiGo Airlines. (Representational Image | PTI)

NEW DELHI:  The country’s largest airline IndiGo benefited the most from the crisis at Go First as its share in the domestic market surged to 61.4% in May 2023, up 3.9 percentage points from April 2023, latest data released by the aviation regulator Directorate General of Civil Aviation (DGCA) showed. Other airlines made limited gains. 

Shares of IndiGo gained nearly 3% on Thursday to close the Rs 2,419 on the BSE. Go First, which is currently going through insolvency proceedings and hasn’t made a single flight since May 3, saw its market share going down from 6.4% in April 2023 to 0.4% in May 23. The three Tata Group airlines — Air India, Vistara and AirAsia India — saw an increase of 1.4 percentage point month-on-month in their combined market share to 26.3% in May compared to 24.9% share in April. Akasa Air, one of India’s newest airlines, registered a 0.8 percentage point increase in its market share to 4.8%.

However, the market share of SpiceJet, the Gurugram-based airline which is facing multiple financial headwinds, came down to 5.4% in May from 5.8% in April.  According to the DGCA data, 1.32 crore passengers took a domestic flight in May, a growth of 15.2% higher year-on-year and a 2.5% jump from April. Despite the grounding of Go First, Air traffic continues to see growth from pre-Covid levels as in the pre-Covid of May 2019, domestic airlines had carried only 1.22 crore passengers.

IndiGo carried 81.10 lakh while the Tata Group airlines ferried a total of 34.80 lakh. SpiceJet passenger count stood at 7.20 lakh passengers, while Akasa Air flew 6.29 lakh in May. The shutdown of GoFirst in the peak summer travel season helped all the airlines to achieve a load factor of more than 90%, a key reason why airfares have sky-rocketed in recent times. Spicejet topped the passenger load factor list with 94.8%, followed by Vistara (93.2%) and Air Asia (92.8%). Akasa saw a rise in its passenger load factor to 91.1% in May, from 73.6% in March and 84.9% in April.

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