In Short:
Indian aviation has seen record half-year traffic in 2023, surpassing pre-pandemic levels. IndiGo and Tata group airlines are benefiting the most from this growth. However, there is a shortage of planes, leading to higher fares and capacity challenges. Despite this, every month this year has seen increased air traffic compared to last year. The industry is poised to close the year with a record 16 crore passengers.
Indian aviation is soaring high this year with a record-breaking half-year traffic! Can you believe it? A whopping 7.93 crore passengers flew between January and June, an increase from 7.60 crore passengers in the same period last year. Wow!
In June, we saw the best-ever numbers for domestic air traffic in India. 1.36 crore passengers took to the skies, making it a milestone month despite a slight drop from May. Such incredible growth!
What’s the Buzz?
IndiGo, the star of Indian aviation with record profits, is facing a challenge – a shortage of planes! Can you imagine that? With planes grounded due to maintenance issues, the country’s effective fleet is much less than the registered aircraft count. This has led to higher fares, but the load factors are looking good.
People are seeing an increase in airfares, sometimes double the pre-COVID prices. Despite only a 2.5 per cent rise in departures, there’s a 3.7 per cent increase in capacity by ASK, indicating higher load factors. The airlines are certainly flying high, but at what cost to passengers?
Who’s Winning?
IndiGo and the Tata group are ruling the skies, benefiting the most from the aviation market’s growth. Back in the day, they had a market share of 24.1 per cent, but now they’ve soared to 28.7 per cent. It’s a fierce competition up there!
As of May, Akasa Air, Air India, and IndiGo were leading the pack in slot compliance, making the most of allocated slots. Meanwhile, Air India Express and SpiceJet are lagging. The race is on!
Final Thoughts
Each month in 2023 has seen more air traffic than the same month last year. The growth rate is steady at 5 per cent, hinting at a potential record-breaking 16 crore passengers for the year. Exciting times ahead!
The second half of the year is predicted to see more capacity deployment, with airlines like Air India Express and IndiGo gearing up for new aircraft deliveries. The recent incident at Delhi airport has raised questions about terminal availability, but once resolved, it could mean more flights and happier passengers!
