Indian airlines carried a record 1.42 crore passengers on domestic routes in November 2024, marking the highest-ever monthly traffic.
According to data from the Directorate General of Civil Aviation (DGCA), domestic passenger traffic surged 12 per cent year-on-year in November to 1.42 crore, an increase from 1.36 crore in October 2024.
India’s largest airline, IndiGo, achieved its highest-ever monthly market share of 63.6 per cent in November 2024, transporting 90.70 lakh passengers. This is up from 63.3 per cent in October 2024 and higher than September’s 63 per cent.
Air India held a 24.4 per cent share of the domestic market, while Vistara accounted for 2.9 per cent. Notably, Vistara’s data reflects operations only up to November 11, as the airline merged with Air India on November 12. Together, Tata Group airlines, including Air India and Vistara, commanded a combined market share of 27.3 per cent.
Akasa Air amassed a market share of 4.7 per cent, and SpiceJet’s share came in at 3.1 per cent. SpiceJet’s market share has been growing over the past two months following the fund infusion. The Gurugram-based airline’s market share had fallen to 2 per cent in September.
While all these carriers saw their share rise, the share of Alliance Air remained unchanged at 0.7 per cent.
Domestic ratings agency ICRA said that airlines’ capacity deployment in November 2024 was higher than in November 2023 by 8.6 per cent, but lower by 1.5 per cent compared to October 2024. It is estimated that the domestic aviation industry operated at a passenger load factor (PLF) of 90.4 per cent in November 2024, compared to 86.3 per cent in November 2023 and 89.5 per cent in November 2019 (pre-Covid).
ICRA also said that the pace of recovery in industry earnings is likely to be gradual, owing to the high fixed-cost nature of the business. ICRA expects the Indian aviation industry to report a net loss of Rs 2,000-3,000 crore in FY2025 and FY2026, compared to a net profit of Rs 1,600 crore in FY2024, due to anticipated pressure on yields as airlines strive to maintain adequate PLF amid continued elevated ATF prices.
“Further, the higher borrowing costs due to increased lease liabilities with the scheduled aircraft deliveries for select airlines are likely to increase the interest burden. Nonetheless, the expected losses are significantly lower than the losses of Rs 23,500 crore and Rs 17,400 crore reported in FY2022 and FY2023, respectively,” it said.
From April 2024 till July 2024, the ATF prices were higher by 3.1 per cent, 6.4 per cent, 6.7 per cent, and 4.9 per cent, respectively, on a year-on-year basis. From August to December 2024, the prices were lower on a YoY basis by 2.2 per cent, 17.8 per cent, 26.5 per cent, 19.6 per cent, and 14.5 per cent, respectively.