Domestic air travel in May surges 36% YoY; Go First loss is IndiGo’s gain

In May, domestic air travel in India surged 36 per cent compared to last year, with domestic airlines transporting 1.32 crore passengers, according to data released by the Directorate General of Civil Aviation (DGCA) on June 15.

IndiGo’s market share crossed 60 per cent for the first time to reach 61.3 per cent. The next biggest market share was that of Tata Sons’ portfolio of airlines, whose combined share was 18.2 per cent.

This was a 2.5 per cent increase from April’s figures, when 1.29 crore passengers were flown, showing significant recovery from pre-pandemic levels. For context, May 2019 saw only 1.22 crore passengers.

Airlines gain from GoFirst’s exit

In the wake of Go First’s suspension of operations on May 2, IndiGo, India’s largest airline, gained significant market share, increasing by 390 basis points in May alone. The airline’s market share reached 61.3 per cent in May, up from 70 basis points in April, 90 basis points in March, and 130 basis points in February, and carried 81.10 lakh passengers.

Also read: Go First bankruptcy: 9 policy changes that can provide tailwinds to Indian aviation

Air India became the country’s second-largest domestic carrier in May, capturing a 9.4 per cent market share and flying 12.44 lakh passengers. Despite dropping its share from 9.2 per cent in January to 8.6 per cent in April, Go First’s grounding helped Air India rebound.

Vistara’s market share grew by 30 basis points in May to 9 per cent, with the airline serving 11.95 lakh passengers. Furthermore, AirAsia India, a member of the Tata group, rose to fourth place in market share, which increased by 30 basis points to 7.9 per cent in May, as it flew 10.41 lakh passengers.

SpiceJet became India’s fifth-largest domestic airline in terms of market share in May due to GoFirst’s grounding. However, it faces competition from newcomer Akasa Air, as SpiceJet’s market share fell by 40 basis points in May while Akasa Air’s rose by 80 basis points.

SpiceJet reported a 5.4 per cent market share with 7.2 lakh passengers, while Akasa Air had 4.8 per cent with 6.29 lakh passengers. Much of Go First’s 6.4 per cent market share in April, with 8.29 lakh passengers, shifted towards IndiGo in May, with the latter carrying an additional 7.04 lakh passengers.

Passenger load

As for passenger load factor, or occupancy rate, SpiceJet, Vistara, IndiGo, Air India, and AirAsia India reported rates of 94.8 per cent, 93.2 per cent, 91.5 per cent, 90.1 per cent, and 92.8 per cent, respectively, in May. Akasa Air, the newest Indian carrier, saw its load factor climb to 91.1 per cent in its tenth month of operation from 73.6 per cent in March and 84.9 per cent in April.

Also read: Go First says it’s ready to soar again, but the odds suggest otherwise

In May, the DGCA received as many as 566 passenger complaints, equating to approximately 0.42 complaints per 10,000 passengers. This increase was largely attributed to the discontinuation of Go First’s services.

Akasa Air achieved the best on-time performance for the third consecutive month at four metro airports — Delhi, Bengaluru, Hyderabad, and Mumbai — with a punctuality rate of 92.6 per cent. IndiGo and Vistara followed closely behind, with Air Asia also performing well.