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Monday, 09 July, 2018, 11 : 37 AM [IST]

India’s Domestic Passenger Traffic sees 28% growth in March 2018

India’s domestic airlines carried 337.90 lakh passengers as against 272.79 lakh passengers (up 23.87%) during January-March 2018. However, Passenger Load Factor has declined MoM from February to March 2018. TravelBiz Monitor presents key findings.
Fassengers carried by domestic airlines during Jan 2018 were 114.65 lakhs as against 95.79 lakhs during the corresponding period of previous year thereby registering a growth of 19.69%, according to data released by the Directorate General of Civil Aviation (DGCA).

Similarly, the passenger traffic witnessed a yearon- year growth of 23.87% with 337.90 lakh passengers travelling by air in the first three months of 2018 as against 272.79 lakh during the corresponding period in 2017.

However, YoY comparison with March 2017 shows that PLFs have increased from 82% to 88% in March 2018. The overall cancellation rate of scheduled domestic airlines for the month of March 2018 has been 1.38%.

Spicejet continued to lead the passenger load factor parameters, a measure for capacity utilisation, with 95% followed by Indigo (89%), Vistara (88.2%), Jet Airways (86%), and Air India (83%). Indigo continued to lead in the On Time Performance parameters recorded at four metro airport with 84.1 pe cent. Spicejet and Vistara with 83.9% and 83% followed closely, the report said.

Indigo continued to be the market leader with a 39.5% share followed by Jet Airways (15%), Air India (13.4%), Spicejet (12.7%). The issue of grounding of the A320 Neo aircrafts over safety concerns regarding the Pratt and Whitney 1100 engines appears to have impacted Indigo, with cancellations and delays affecting its passengers. According to the report, Indigo reported maximum cancellations affecting 56,884 passengers, while 58,656 passengers were impacted due to delays beyond two hours.

But it was Jet Airways which had to pay hefty compensation for denying boarding to passengers, cancellations and delays. The airline paid out compensation of INR 54.17 lakh for refunding, rebooking passengers on other flights, and hotel accommodation for 78 passengers who were denied boarding, the report said.

As per the report, Indian domestic passenger market has shown a steady increase in Revenue Passenger Kilometers (RPKs) with January 2018 recording RPKs of 17.9 % while domestic airlines posted RPKs of 22.9 % in Feburary 2018. India’s RPK growth is twice that of China’s 11.8 %. RPK is an airline industry metric that shows the actual demand for air transport, and calculates airline traffic by multiplying the number of kilometres traveled by paying passengers.

Airports Council International has predicted that India will become the third largest aviation market in terms of passengers by 2020 after the US and the China.

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