Domestic passenger traffic growth dips to 15.7% in Feb. 2017: ICRA
DSIJ Intelligence / 18 Apr 2017
A study conducted by credit-rating body ICRA showed dip in the growth of domestic passenger traffic in February 2017. The domestic passenger traffic had witnessed a consistent 20 per cent YoY growth since October 2015. However, the numbers slipped to 15.7 per cent in February 2017.
The domestic passenger traffic had witnessed a consistent 20 per cent YoY growth since October 2015. However, the numbers slipped to 15.7 per cent in February 2017.
The traffic growth for the 11-month FY2017 period remained solid at 22.5 per cent YoY.
The traffic growth on international routes remained moderate with the industry reporting 6.8 per cent YoY growth during February 2017. Nevertheless, performance of the Indian carriers on international routes continued to remain better than the industry, with 12.1 percent growth in traffic.
The 11-month FY2017 growth for Indian carriers was 11.6 per cent YoY, which is better than 8.5 per cent YoY growth for the industry, which translated into gradual improvement in market share of the Indian carriers on international routes.
In line with the fall in demand during off-peak season, the growth in capacity addition, measured in available seat kilometres ( ASKM) on domestic routes was lower at 13.8 per cent as against around 20 per cent for the last 15 months.
The industry reported healthy domestic passenger load factor (PLF) of 87.2 per cent in February 2017 and 84.6 per cent in the 11m FY2017 period, at the expense of lower yields. The international PLFs for Indian carriers remained weaker as compared to the domestic performance with 79 per cent PLF in February 2017 and 78.4 per cent during 11m FY2017.
ICRA expects that the sizeable fleet expansion by domestic airlines and scaling up of operations by new airlines will continue going forward, resulting in sizeable capacity addition in the industry.
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