India’s largest passenger airline IndiGo Airlines with a market share of 39.5 percent as of March 2018, is soon preparing to fly higher and wider by expanding its operations. According to data released by the Directorate General of Civil Aviation, the current share market in the month of September 2018 surged to its uppermost on capacity addition. This country’s largest airline, operated by InterGlobe Aviation Ltd., rose to 43.2 percent from 41.9 percent as compared for the month of August 2018, which compares with listed peers SpiceJet Ltd. and Jet Airways (India) Ltd.’s share of 12 percent and 15.8 percent, respectively, during the month.
The DGCA data even showed the number of passengers increased 19 percent on a twelve-monthly basis to nearly 1.14 crore in September 2018, the development in the aviation market was chiefly led by IndiGo. The economical carrier’s passenger growth stood at 34 percent—the highest in 20 months. Passenger growth for IndiGo’s peers, however, continued set for at least 5 straight quarters. Festival season demand, developed capacity addition and lesser rates increased the airline passenger traffic in India, the world’s fastest-growing flight market.
The utilization, passenger weight factor for IndiGo dropped 250 basis points to 82.7 percent in September. However, its current share market rosed instantly. SpiceJet’s passenger load factor fell for the fourth straight month to 93.2 percent. However, as per Bloomberg, the airline succeeded to report volume utilization at more than 90 percent for 41 months in a row.
The whole debt for IndiGo is aircraft related. ,” InterGlobe Aviation stated in a press release that IndiGo does not have any working capital debt. The firm further announced its results post market hours on Tuesday. The share price of the airline settled 0.80 percent up at Rs 817.10, as stated in The Economic Times.
Besides the rise in the current share market, according to the company’s co-founder and interim CEO, Rahul Bhatia, in spite of the problematic environment, IndiGo remains well-situated thanks to the less expense structure and tough balance sheet[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]