IndiGo, the largest carrier in terms of market share and capacity, added the most number of flights during the first eleven months of 2016 and will continue to add higher capacity than its peers, ICICI Securities said in a report.
“This is best illustrated with the Available Seat per Kilometre (ASK) trends for IndiGo/SpiceJet and Jet. So, while total ASK for IndiGo has increased by 30% between Jan-Nov’16, the same has been only 13% for SpiceJet and 3% for Jet. Capacity addition by IndiGo will only increase during 2HFY17 as induction of neos gather more pace,” merchant banking and advisory firm ICICI Securities said in a report on aviation.
IndiGo is the largest domestic carrier in the country both in terms of capacity as well as market share. During the month of November, the airline carried 42.1% passengers, according to the Directorate General of Civil Aviation data.
The firm also said that IndiGo’s expansion has been higher than projected. “IndiGo reported Available Seat Kilometre (ASK) growth of 25% Y-Y in Q1FY17 compared to a guidance of 23%. Similarly, the ASK growth in Q2FY17 has been 27% for IndiGo compared to guidance of 25%. During October-November, IndiGo recorded an ASK growth of with 34% Y-Y compared to a guidance of 30% for Q3/Q4FY17,” said the firm.
The firm, however, raised concerns over a sharp decline in on-Time Performance (OTP) of IndiGo.
“There has been a sharp decline in OTP for IndiGo to 72.4%, lowest in more than last two years. While this could be due to fog related disruptions in the winter, with even higher capacity addition planned during the remainder of FY17, the OTP performance could remain under pressure for IndiGo and will be keenly watched,” it said.
