ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
  • Adani Saga
  • Markets
    • Stocks
    • Global Markets
    • IPO
    • Companies
    • Currency
    • Commodities
  • My Money
  • Calculators
    • Income Tax Calculator
    • Home Loan/EMI Calculator
    • Mutual Fund Returns Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • SIP calculator
    • Lumpsum Calculator
    • SWP Calculator
  • Videos
    • M Se Market
    • Jeb Zindagi Zaroorat
    • Light Camera Stocks
    • Tech Takes
    • Big Bulls Ka Nishana
    • Paisa Wasool
    • Commodity Ke MrityunjayMantra
    • The Right Property Show
  • Economy & Infra
    • Policy & Initiatives
    • Agriculture
    • Telecom
    • Aviation
    • Railways
    • Retail
    • Roadways
    • World Economy
  • Exclusive
    • Wealth Guide
    • Interviews
  • Auto
    • Cars
    • Bikes
    • Electric Vehicle
    • Commercial Vehicles
  • Tech
    • Mobiles
    • Gadgets
    • Reviews
    • Tips and Tricks
    • Apps
  • Real Estate
    • Home Buyers
    • Builders
  • Axis MF
  • Trending
    • Entertainment
    • Politics
    • Lifestyle
    • Travel
    • Sports
    • Viral
    • Education
    • Jobs
Read in App
Business News » Companies News

IndiGo's on time performance likely to remain under pressure, says report

All Indian airlines together had transported a total of 73.22 lakh passengers in November 2015.

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
IndiGo's on time performance likely to remain under pressure, says report
The airline has a fleet of 125 planes, which it plans to increase to 136 by March. Photo: Official Website

On Time Performance (OTP) of budget carrier IndiGo, which touched the lowest in more than two years in November, is likely to remain under pressure in the current fiscal even as it continues to have the largest market share, says a report.

More than a quarter of IndiGo's flights failed to depart or arrive on their scheduled time last month and its OTP from four metro airports -- Delhi, Mumbai, Hyderabad and Bengaluru -- stood at a poor 72.4%.

IndiGo also recorded one of the highest cancellation rates last month, behind new entrant Air Carnival, regional carrier TrueJet and competitor GoAir. IndiGo could not operate as much as 1.46% of its total flights in November.

"There has been a sharp decline in OTP for IndiGo to 72.4% (in November), 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 on time performance could remain under pressure for IndiGo and will be keenly watched," ICICI Securities said in a report.

IndiGo continued to dominate the domestic market having flown 37.73 lakh passengers last month while its market share touched 42.1% during the same period.

The airline has a fleet of 125 planes, which it plans to increase to 136 by March. Budget carrier SpiceJet recorded yet another high Passenger Load Factor (PLF) of 92.5% in November, while reporting best OTP for the third consecutive month.

PLF is a measure of how much of an airline's passenger carrying capacity is used or average percentage of seats filled in an aircraft.

Staying with high growth trajectory, domestic air traffic surged a little over 22% to 89.66 lakh passengers last month as low fares coupled with introduction of new routes and services in the winter schedule helped local carriers fly more passengers.

All Indian airlines together had transported a total of 73.22 lakh passengers in November 2015. The trajectory of Indian aviation has remained largely on the same course of higher traffic, higher PLFs with weaker yields in 2016-17 thus far, the report said.

Starting third quarter, it said, there has been significant improvement in PLFs by the market leader IndiGo relative to other airlines which would put pressure on the competition.

"We believe that without major plans of near term capacity addition and already high passenger growth, sustaining lower yields will start to lose marginal benefits from here on for most of the airlines except IndiGo, further exacerbated by rising crude prices," the report said.

IndiGo possesses the lever of volume addition unlike others which can insulate some of its earnings even under lower fares/higher crude prices, ICICI Securities said.

Higher PLFs can provide additional safeguard to the earnings of IndiGo through increase in topline as well as margins, it added.

According to the report, for five consecutive months now, passenger growth has been significantly higher than the capacity growth, which "augurs favourable supply demand dynamics for the industry".

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
IndiGoAviationpassenger load factorOn Time PerformanceAir Carnival
Written By: PTI
Updated: Thu, Dec 22, 2016
06:09 pm
New Delhi, PTI
RELATED NEWS
Citi upgrades this airline stock for first time in over two years; should you buy, sell or hold? Citi upgrades this airline stock for first time in over two years; should you buy, sell or hold?
Traders' Diary: Buy, sell or hold strategy on SBI, Bajaj Finance, Tata Motors, Vedanta, IndiGo and 15 other stocks today Traders' Diary: Buy, sell or hold strategy on SBI, Bajaj Finance, Tata Motors, Vedanta, IndiGo and 15 other stocks today
Western Australia govt in talks with Indian airlines for direct flights to Perth Western Australia govt in talks with Indian airlines for direct flights to Perth
At 55.9%, IndiGo led market share in Feb; airlines received 359 complaints At 55.9%, IndiGo led market share in Feb; airlines received 359 complaints
Aviation stocks end as a mixed bag on these 2 factors – here’s what investors should know Aviation stocks end as a mixed bag on these 2 factors – here’s what investors should know

LATEST NEWS

Paytm says upgraded payments platform with 100% indigenous technology

Happy Chaiti Chhath Puja 2023 Wishes: The four-day festival starts today

March F&O expiry, global cues, and FII flows among other factors for Dalal Street in holiday-shortened next week

Piyush Goyal says India aspires to take technical textiles market to $40 billion in 4-5 years

Income tax: What are the 6 common tax-saving mistakes that can be avoided

Maruti Suzuki targets sales via Nexa outlets to overtake volumes of Hyundai, Tata Motors by next year

Experts believe proposals in Finance Bill on debt mutual funds and securities transaction tax may adversely impact market

Adani-Hindenburg Saga: Adani Total Gas, Adani Transmission to move to long term ASM Stage-1 framework from Monday

NPS vs OPS: Govt to set up panel to improve new pension scheme to take care of employees’ concerns

Avalon Technologies IPO to be launched on April 3: 10 things to know before subscription opens

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2023. Indiadotcom Digital Private Limited. All Rights Reserved.
LIVE TV