Analyst Corner: Indigo exits Nov at closer to 65% of pre-Covid levels

Sweet November. Modal share gains from rail are giving a meaningful fillip to volumes of air travel and that of Indigo in specific. This has helped Indigo exit November at closer to 65% of pre-Covid levels of passenger volumes even as overall long-distance air-conditioned travel is at modest 45% y-o-y levels. Load factors for air travel have also likely crossed 80% levels recently, suggesting return of business travellers. The risk to industry dynamics from reduction in flying by past frequent air travellers is receding.

November was a telling month in terms of shift of traffic to air from rail. Rail volumes in the exit week were at one-third of pre-Covid levels while the market leader in Indigo was potentially at two-thirds of pre-Covid levels.