MOSL: AVIATION-Domestic air passengers increase 20.6% in October- ASK/RPK growth for IndiGo remains muted

​AVIATION: Domestic air passengers increase 20.6% in October; ASK/RPK growth for IndiGo remains muted due to engine issues

• Domestic air passengers in India grew 20.6% YoY to 10.4m in October (v/s +16.5% YoY in Sep-17 and +15% YoY in 2QFY18). Passenger growth has been in double-digits for the last 39 months.
  
• Domestic ASK growth was 15.7% YoY in October (v/s 14.9% YoY in Sep-17 and 14% YoY in 2QFY18). RPK rose 21% YoY in October (v/s 17.6% YoY in Sep-17 and 15% YoY in 2QFY18). While IndiGo's ASK/RPK grew slower at 6.3/9.3% YoY due to engine issues, SpiceJet's ASK/RPK grew 23.8/26.3% YoY in October.
  
• Domestic industry load factor inched up to 84.8% in Oct-17 (v/s 84.5% in Sep-17 and 83.7% in 2QFY18). IndiGo's load factor also increased to 87.3% in Oct-17 (v/s 85.2% in Sep-17 and 84.1% in 2QFY18).
  

Domestic air passengers up 20.6% YoY to 10.4m in October

• India's domestic air passengers grew 20.6% YoY to 10.4m in October 2017. Passenger growth has been in double-digits for the last 39 months.
  
• IndiGo's passengers grew slower at 11.9% YoY in October (v/s 11.2% YoY in Sep-17 and 10% YoY in 2QFY18) due to engine issues.
  
• However, SpiceJet's domestic passenger volumes grew 22% YoY in Oct-17 (v/s 28.2% YoY in Sep-17 and 31% YoY in 2QFY18).
  
• GoAir's passengers rose 34.3% YoY in Oct-17 (v/s 17.7% YoY in Sep-17 and 12% YoY in 2QFY18).
  
• Passenger volume growth for the other airlines was as follows: Jet Airways: +21% YoY (+9% YoY in 2QFY18) and Air India: +22.8% YoY (+6% YoY in 2QFY18).