Air India gains market share on reduced fares
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Air India won back more of its domestic passenger market share in August, posting a second straight month of increase. The upturn follows the airline’s market share sliding at the start of the year, falling to a low of 13.2% in May. Air India ended with a 17.4% passenger share, up from 16.5% in July, partly as it priced tickets cheaper than those of low-cost carriers. Air India’s average cabin load factors increased to 72.8% in August from 65.5% earlier. “Their market share has increased because they drastically reduced their fares in June-August period,” Rashesh Shah, an analyst at brokerage firm ICICI Securities Ltd, was reported saying by livemint.com.
Market share for Jet Airways together with its low-fare subsidiary JetLite slid to 26.3% in August from 27% a year earlier. Kingfisher’s share slipped to 18.8% from 20% and GoAir’s to 5.3% from 5.7%. IndiGo grew its market share to 18.7% from 16.4% and SpiceJet to 13.4% from 12.6%. It is not clear if Air India’s pricing strategy is allowing it to gain revenue and reduce daily losses. The airline said in a statement last week that its total passenger revenue, including international operations, increased 12.3% to US$204.7 million (INR998 crore) in August, but did not disclose if was made a loss or profit.
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