FREE

MOSL: AVIATION-Domestic passenger growth slips to 12.5% YoY in July-Engine issues push IndiGo’s PAX/ASK growth to multi-year low

​AVIATION: Domestic passenger growth slips to 12.5% YoY in July; Engine issues push IndiGo’s PAX/ASK growth to multi-year low

• Domestic air passengers in India grew 12.5% YoY to 9.5m in July 2017 (v/s +20% YoY in June 2017). Apart from seasonal weakness, domestic passenger growth was slower due to engine issues faced by IndiGo (+9.3% YoY) and GoAir (+3.6% YoY).
  
• Domestic ASK growth in July was 13% YoY (v/s +14% YoY June 2017) and RPK rose 12% YoY (v/s +21% in June 2017). Due to engine issues, IndiGo's ASK/RPK grew 6% YoY, the slowest pace in the last three years.
  
• Domestic industry load factor stood at 83.2% in July 2017 (v/s 85.9/88.9% in June/May 2017). IndiGo's load factor stood at 83.7% v/s 87.8/91% in June/May 2017.
  

Domestic air passengers up 12.5% YoY to 9.5m in July

• ​India's domestic air passengers grew 12.5% YoY to 9.5m in July 2017. Passenger growth has been in double-digits for the last 36 months.
  
• IndiGo's passenger growth slipped to 9.3% YoY in July 2017 due to engine issues. In June, the airline parked nine aircraft due to the lack of spare engines.
  
• GoAir also faced engine issues, recording domestic passenger volume growth of 3.6% YoY in July 2017.
  
• While IndiGo and GoAir faced engine issues, SpiceJet's domestic passenger volumes grew 36.7% YoY in July 2017 (v/s 26/17% YoY in June/May 2017).
  
• Passenger volume growth for the other airlines was as follows: Jet Airways: +6.4% YoY (v/s +9.9/8.9% YoY in June/May 2017) and Air India: +2.9% YoY (v/s -5.5/ -0.8% YoY in June/May 2017).