MOSL: AVIATION-Domestic passengers increase 16.5% in September-ASK/RPK growth for IndiGo remains muted

​AVIATION: Domestic passengers increase 16.5% in September; ASK/RPK growth for IndiGo remains muted due to engine issues

• Domestic air passengers in India grew 16.5% YoY to 9.6m in September (+15% YoY in 2QFY18 v/s +17.7% YoY in 1QFY18). Passenger growth has been in double-digits for the last 38 months.
  
• Domestic ASK growth was 14.9% YoY in September and 14% YoY in 2QFY18 (v/s +14.1% YoY in 1QFY18). RPK rose 17.6% YoY in September and 15% YoY in 2QFY18 (v/s +18% YoY in 1QFY18). While IndiGo's ASK/RPK grew slower at 6/10% YoY due to engine issues, SpiceJet's ASK/RPK grew 29/30% YoY in September.
  
• Domestic industry load factor stood at 84.5% in September and 83.7% in 2QFY18 (v/s 86.8% in 1QFY18). IndiGo's load factor stood at 85.2% in September and 84.1% in 2QFY18 (v/s 88.7% in 1QFY18).
  

Domestic air passengers up 16.5% YoY to 9.6m in September

• India's domestic air passengers grew 16.5% YoY to 9.6m in September 2017. Passenger growth has been in double-digits for the last 38 months.
  
• IndiGo's passengers grew slower at 11.2% YoY in September and 10% YoY in 2QFY18 (v/s +25% YoY in 1QFY18) due to engine issues.
  
• GoAir's passengers rose 17.7% YoY in September and 12% YoY in 2QFY18 (v/s +18% YoY in 1QFY18.), also due to engine issues.
  
• However, SpiceJet's domestic passenger volumes grew 28.2% YoY in September and 31% YoY in 2QFY18 (v/s +19% YoY in 1QFY18).
  
• Passenger volume growth for the other airlines was as follows: Jet Airways: +10.3% YoY (+9% YoY in 2QFY18) and Air India: +8.3% YoY (+6% YoY in 2QFY18).