Shares of InterGlobe Aviation and SpiceJet jumped 3 percent in intraday trade on Tuesday after domestic air traffic crossed the 5 lakh mark in a single day for the first time. There was a surge amid the festive and wedding season as airlines carried over 5,00,000 passengers on November 17 with 3,173 flight departures.
According to reports, the surge in domestic air traffic was between the festive and wedding seasons. Domestic airlines carried 5,05,412 passengers on November 17 and the number of flight departures was 3,173.
This is the first time domestic air traffic has crossed the 5,00,000 mark in a single day.
The Ministry of Civil Aviation appreciated this historic landmark in its post on ‘X’. “On November 17, 2024, Indian Aviation marked a historic milestone as 5,05,412 domestic passengers flew in a single day, crossing the significant 5 lakh passenger threshold. This reflects the rapid growth of the sector and the growing confidence of Indians in the accessibility and reliability of air travel,” the ministry posted.
Should you invest in Indigo?
In a recent note, Goldman Sachs maintained a “buy” rating on Indigo and a per share target of Rs. A target price of 4,800 was kept. Air traffic growth was 10 percent/11 percent in October or November. Indigo’s PLF was 90 percent against 85.6. percent last year.
“While yields are lower, there may be upside to guidance, given improving domestic traffic growth and higher PLFs,” they added.
In the second quarter, Indigo Rs. 189 crore as against a net profit of Rs. 986 was reversed to a net loss. This was mainly due to rising fuel costs and a record number of groundings. The low-cost airline operator’s revenue from operations, however, grew 13.6 percent in Q2FY25 to Rs. 16,969.6 crores.
Who is the leader of the Indian sky?
According to DGCA, IndiGo’s market share increased further to 63 per cent in September, while Air India’s 15 per cent, Akasa Air’s 4.4 per cent and SpiceJet’s declined to 2 per cent. Domestic air passenger traffic rose 6 percent to 13 million in September. On the other hand, domestic carriers flew 1.30 crore passengers compared to 1.22 crore passengers, up 6.38 per cent year-on-year.
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