Business – India;Domestic air travel takes off in November
NEW DELHI: Domestic air travel picked up sharply in November as improved economic environment encouraged both business and leisure travel, but air
fares are yet to recover, suggesting that financial performance of airlines may not look as good.
As per a data released by industry regulator Directorate General of Civil Aviation (DGCA), air carries flew 39.57 lakh passengers during this period, up nearly 30% compared to the corresponding month last year.
Domestic airlines such as Air India, Jet Airways, IndiGo and SpiceJet clocked over 70% flight occupancy in November, indicating positive signals of profitable growth.
Amadeus India managing director Ankur Bhatia who tracks the aviation sector closely, however, said that airlines were still behind the break-even level.
“Fares have still not firmed up. In the first 15 days of December there has been 40% jump in net travel transaction but yield has not improved at the same pace,” he said.
Airlines have increased capacity since June this year to meet the gradually improving demand. Country’s largest private carrier by market value Jet Airways witnessed 33% surge in passenger numbers during November.
The share price of airline companies is up nearly 50% since October end against about 10% rise in the benchmark indices.
However, part of the improvement in the traffic could be due to the base effect, as air travel had plummeted after the financial crisis broke out.
Domestic airlines carried 39.96 million passengers during January-November this year, up 5.45% compared to the corresponding period in 2008.
The domestic airline industry lost close to Rs 10,000 crore in 2008-09.
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