Bengaluru: Low-cost airline IndiGo, perhaps the only profitable airline
in the country, has seen its load factor dip below the industry average
in the second quarter of this fiscal. For the quarter, the airline’s
average domestic passenger load factor was 73.3 per cent compared with
the industry average of 74.8 per cent, largely because of aggressive
pricing by some of its competitors. Although the load factor increased
in October to 76.2 per cent, the trend of trailing average load factor
continued. The average industry domestic load factor for October was
77.6 per cent.
Sources in the airline said that during the second quarter, IndiGo’s financial performance took a hit as well. The airline does not disclose its financial performance as it is a privately-held company.
SpiceJet was able to increase its load factor even during September, historically the leanest month of the season, largely because of its market stimulation drive through reportedly well fenced, highly discounted fares on almost all its sectors that aimed to fill up seats that would have otherwise flown empty.
Companies such as SpiceJet and AirAsia India have rolled out highly discounted fares during the last few months.
Read news in full 28/11/14 K Giriprakash/Business Line
Sources in the airline said that during the second quarter, IndiGo’s financial performance took a hit as well. The airline does not disclose its financial performance as it is a privately-held company.
SpiceJet was able to increase its load factor even during September, historically the leanest month of the season, largely because of its market stimulation drive through reportedly well fenced, highly discounted fares on almost all its sectors that aimed to fill up seats that would have otherwise flown empty.
Companies such as SpiceJet and AirAsia India have rolled out highly discounted fares during the last few months.
Read news in full 28/11/14 K Giriprakash/Business Line
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