India’s aviation sector recorded a 25% year on year, traffic growth, carrying the most domestic passengers, brokerage house Anand Rathi said in a report. <\/p>\n
The industry passenger-load factor (PLF) was constant at 83% (83.2% a month ago). Indigo, Jet Airways and Spicejet continue to hold around a 71% market share among themselves. Aviation turbine fuel (ATF) was up 8% month on month, the report said. <\/p>\n
While the aviation sector grew by 25% in Jan\u201917. Domestic airlines carried 9.6 million passengers that month, compared to 7.7 million a year ago. The number of passengers for Apr\u201916 to Jan\u201917 rose 23% yoy, indicating a structural upswing in demand. <\/p>\n
The passenger load factor in Jan\u201917 has been almost the same as the month prior, primarily due to the end-of-tourist season. <\/p>\n
Load Factor: The PLF for Jan\u201917 was 83.2%, declining 21bps mom (from 80.2% a month ago). After reporting its highest ever load factor in Dec\u201916 (93.7%), Spicejet\u2019s Jan\u201917 PLF was constant, 10bps down to 93.6%. Indigo\u2019s PLF came at 90%, down 140bps mom, from 91% a month ago. Including Jet-lite, Jet Airways\u2019 PLF was 86%, up 20bps month on month. <\/p>\n
Market share: In Jan\u201917 Indigo reported a 39.8% market share, down 51bps month on month. Spicejet\u2019s market share, at 12.8%, was the same as the previous month. Jet Airways also reported a consistent 18% market share. In comparison to Q3 FY17, Indigo, Jet Airways and Spicejet\u2019s Jan market share combined was down 130bps to 70.6% (from 71.9%). <\/p>\n
Mom decline in ATF prices: ATF prices during the month increased. The average ATF price was up 8%, The World Bank estimates that international crude prices would be steady in the next two years, at between $40 and $60 a barrel. <\/p>\n
Favourable outlook. The Indian aviation sector is one of the top-10 aviation sectors in the world. It has a high growth trajectory. Demand is expected to shoot up to over 20% during FY17-19. While demand continues to be very strong, yields are comparatively softer yoy, which may dent overall profitability. <\/p>\n
Valuation Anand Rathi said they continue to be bullish on Spicejet and Indigo. At the current market price, Spicejet\u2019s stock trades at 5.2 times its FY19 adjusted EV \/ EBITDAR. Indigo\u2019s at 6.5 times FY19 adjusted EV \/ EBITDAR. Anand Rathi said it maintained a buy recommendations on Spicejet and Indigo, with targets of Rs 150 and Rs 1,040 respectively.<\/p>\n","protected":false},"excerpt":{"rendered":"
India’s aviation sector recorded a 25% year on year, traffic growth, carrying the most domestic passengers, brokerage house Anand Rathi said in a report. The industry passenger-load factor (PLF) was constant at 83% (83.2% a month ago). Indigo, Jet Airways and Spicejet continue to hold around a 71% market share among themselves. Aviation turbine fuel (ATF) was up 8% month on month, the report said. While the aviation sector grew by 25% in Jan\u201917. Domestic airlines carried 9.6 million passengers that month, compared to 7.7 million a year ago. The number of passengers for Apr\u201916 to Jan\u201917 rose 23% yoy, […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[229],"tags":[],"class_list":["post-101186","post","type-post","status-publish","format-standard","hentry","category-civil-aviation"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/101186","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=101186"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/101186\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=101186"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=101186"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=101186"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}