Passenger Load Factor Dips For Airlines In September

Indian airlines were able to fill fewer seats in September after witnessing a rise a month ago even as the number of flyers rose to the highest in the three months since lockdown restrictions were eased.

The industry-wise load factor, a measure of seat occupancy, fell to 60.5% in September compared to 63.2% in August, according to data released by the Directorate General of Civil Aviation. Even an increase in daily flight movements during the same period couldn’t counter the trend.

Airlines registered an average of 2,673 flight movements as on Sept. 29, according to information shared by the Ministry of Civil Aviation, compared with 2,051 as on Aug. 30.

India, the world’s fastest growing aviation market, had barred all passenger flights on March 25 to control the spread of coronavirus. Domestic operations resumed on May 25, but international air travel continues to remain suspended, barring flights under the Vande Bharat Mission.

The Civil Aviation Ministry permitted increasing capacity to 45% with effect from June 27, which was further scaled up to 60% on Sept. 2. Hardeep Singh Puri, the civil aviation minister, had earlier this month said airlines will soon be allowed to operate at 75% of their capacity.

About 39.43 lakh passengers took to the skies last month, a rise of 39.2% over August, the DGCA data showed. That compares with a 34.4% month-on-month growth in August. On a year-on-year basis, however, air traffic fell 65.82% in September.

Here’s a look at passenger growth of major Indian airlines in September (MoM):

• IndiGo’s air traffic growth stood at 34.72% as it flew 22.66 lakh passengers.
• SpiceJet’s air traffic growth was 35.54% as it carried 5.30 lakh passengers.
• 3.72 lakh passengers flew Air India in the reported month, a growth of 33.81%.
• GoAir’s passenger growth stood at 98.49% as it carried 2.64 lakh people.
• Passenger growth of Air Asia stood at 22.39% as it flew 2.35 lakh people.
• 2.58 lakh passengers flew Vistara in the reported month, a growth of 81.69%.

Passenger load factor, a measure of capacity utilisation or percentage of seats filled, fell for airlines in September after an improvement in the last month.

Here’s how the airlines fared on the basis of this metric (MoM):

• IndiGo’s passenger load factor stood at 65.4% in September versus 65.6% in August.
• GoAir’s passenger load factor down at 57.6% in September versus 61% in August.
• Seat occupancy of SpiceJet reduced to 73% in in September versus 76% in August.
• AirAsia’s passenger load factor stood at 58.4% in September versus 64.4% in August.
• Vistara’s passenger load factor reduced to 66.7% in September versus 68.3%in August.
• Air India’s load factor down to 57.9% in September versus 58.6% in August.

Vistara and GoAir were the only players that gained market share in September.