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MOSL: AVIATION-Feb-16 domestic air passenger growth at ~20% YoY-Domestic load factor at 87.2%

​AVIATION: Feb-16 domestic air passenger growth at ~20% YoY; Domestic load factor at 87.2%; IndiGo’s domestic ASK/RPK share highest

• Domestic air passengers in India grew ~20% YoY (adj.) in Feb-17 (v/s +25.3% in Jan-17; +23.1% in 3QFY17). However, we believe this strong growth would be at the cost of yields, as seen in headline fares.
  
• While Feb-17 ASK growth stood at 17.8% YoY (adj.) (v/s +21.1% in 3QFY17 and +19% in 2QFY17), RPKs increased 21% YoY (adj.) (v/s +22.8% in 3QFY17 and +24.5% in 2QFY17).
  
• Load factor stood at 87.2% in Feb-17 (v/s 84.8% in 3QFY17 and 83% in 2QFY17).
  
• *adj.: With 2016 being a leap year, we adjust pax/ASK/RPK numbers to calculate YoY change for Feb-17.
  

Domestic air passenger growth at ~20% YoY in Feb-17

• ​India's domestic air passengers grew ~20% YoY (adj.) in Feb-17. Domestic passenger growth remained ~20% and above for the 16th straight month.
  
• IndiGo's passenger growth stood at +28.6% YoY (adj.) in Feb-17 (v/s +43% in 3QFY17 and +39% in 2QFY17).
  
• SpiceJet's domestic passenger volumes grew +20% YoY (adj.) in Feb-17 (v/s +22% in 3QFY17).