InvestorQ : How has the domestic air traffic been like for passengers in the month of January 2021 and is it beneficial to Indigo?
diksha shah made post

How has the domestic air traffic been like for passengers in the month of January 2021 and is it beneficial to Indigo?

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Arya Nanda answered.
7 days ago
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There is not much of a surprise in the fact that India’s domestic air passenger traffic for Jan-21 was lower by 40% at 77.34 lakhs on a YOY basis. Even on a MOM basis, the growth in traffic has been subdued if compared to the month of December 2020. Clearly, the confidence and the intent to fly is still missing among people.

The latest set of data released by the Directorate General of Civil Aviation or the DGCA clearly showed that the lag effect of the COVID pandemic combined with the continued levels of social distancing has taken a sharp toll on the aviation business and the willingness of people to fly.

One important indicator is the variable called the passenger load factor or the PLF. This is conceptually equivalent to factory capacity utilization that is reported by most industries. The PLF during the month of January 2021 also declined over December 2020 as the tourist season began to taper and the figure fell to a low of 64%.

Needless to say, it was Indigo Airlines owned by Interglobe Aviation that once again dominated the skies with a whopping 54.3% market share. In terms of market share, Indigo was followed at a distance by the Tata Group’s Vistara cornering 12.8% market share. In a tough month, the metro airports recorded high level of on-time performance at 93.7%.

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