Air Passenger Growth is Tapering off - Chart Of The Day 27 March 2019 - Equitymaster
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Air Passenger Growth is Tapering off
Mar 27, 2019


While looking at the current demand-supply scenario in the aviation industry, it is important to look at how air passenger traffic is growing.

In February, domestic air passenger traffic reported its lowest monthly passenger traffic growth since January 2015. It registered a marginal annual growth of 5.6%.

Similarly, in January, the number of passengers flown by domestic airlines grew at 9.1% YoY, while in December, it increased by 13% YoY. This is way lower than the historical growth rate of 20% between 2014-2018 period.

A slowdown in passenger growth is due to several factors. These include frequent flight cancellations due to grounding of fund-starved Jet Airways' aircraft, pilot shortages faced by IndiGo, NOTAMs (notice to airmen) at various airports, and a rise in airfare etc.

In the last 5 years, we saw a surge of middle-class travelling by plane. But when the ticket price goes up, many of them prefer an alternate mode of transportation.

That shows the price sensitivity of the Indian consumer!

Data Source: DGCA

This Chart Of The Day was published in The 5 Minute WrapUp - Did We Miss the Plane By Not Recommending IndiGo?

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