IndiGo’s Market Share Soars to 6-Month High, Akasa Air Tops OTP Chart

    IndiGo’s market share reaches 56.8% in March, while Akasa Air’s on-time performance tops the industry at 94.2%.

    IndiGo, the market leader in Indian aviation, has seen its market share reach a six-month high in March, due in part to new connections to destinations such as Mopa (Goa) and Nashik. On the other hand, low-cost carrier Akasa Air outperformed its competitors in on-time performance (OTP) according to the Directorate General of Civil Aviation (DGCA) data.

    IndiGo’s Market Share and Passenger Load Factor

    In March, IndiGo’s market share rose to 56.8%, but its domestic passenger load factor (PLF) was only 84%, placing it behind Air India and Vistara among the top three airlines. The increase in market share can be attributed to the airline’s expanded connectivity to new destinations.

    Akasa Air’s Impressive OTP and Market Share

    Launched in August 2022, Akasa Air achieved an OTP of 94.2% in March, surpassing IndiGo and securing the top spot. The Mumbai-based airline, which operates a fleet of 19 Boeing 737 Max aircraft, also posted a market share of 3.3%, its best since its debut. OTP is measured by the DGCA at four metro airports: Bengaluru, Mumbai, Delhi, and Hyderabad. With a 92% OTP, IndiGo fell to second place in the OTP rankings, having held the top spot since November 2022.

    Other Airlines’ Performance

    Vistara and Air India followed with PLFs of 83.7% and 82.1%, respectively. Go First, controlled by Wadia Group, experienced its worst market share in several months, ending March with just 6.9%. Its operations continue to be affected by grounded planes awaiting replacement engines. Go First’s OTP remained at the bottom of the table at 49.2%, below government-controlled Alliance Air.

    In March, the number of passengers carried increased 21% year-on-year (y-o-y) to 1.28 million, and 52% y-o-y for the January-March quarter, reaching 3.75 million.

    Indian Aviation Sector Outlook

    Suprio Banerjee, vice president and sector head of corporate ratings at Icra, stated, “The airlines’ capacity deployment in March 2023 was higher by about 14% than in March 2022 and about 7% higher than the pre-Covid levels of March 2019.”

    Despite lingering supply chain issues, the Indian aviation industry is expected to add approximately 135 new planes in FY24, including orders from Air India and Akasa Air, according to CAPA India.

    Industry Performance in the March Quarter

    The December quarter was a record-breaking period for the aviation industry in terms of revenue growth and margin boost. However, airline officials predict that the March quarter will be strong, but not surpass the performance of the December quarter.

    Banerjee added, “Despite a healthy recovery in passenger traffic, the domestic aviation industry continues to face challenges on account of elevated ATF (aviation turbine fuel) prices and depreciation of the rupee against the US dollar, both of which have a major bearing on the airlines’ cost structure.”

    The Indian aviation industry has seen significant growth, with IndiGo’s market share reaching a six-month high and Akasa Air’s OTP leading the industry. The sector continues to face challenges due to high ATF prices and currency depreciation, but the addition of new aircraft and the expansion

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