IndiGo, Tata Group shine with record H1 performance in aviation sector

Temporary grounding of Go First in May had a slight impact on overall market capacity

MUMBAI: Airlines in India transported 79.3 million domestic passengers during the January-June period of this year, marking the highest half-year traffic, according to data released by the Director General of Civil Aviation (DGCA).

This figure represents an increase from 76 million passengers during the same period last year. Notably, in 2023, the industry achieved a record number of passengers, surpassing pre-Covid-19 levels by 5.77 million.

In June, domestic air traffic reached 13.6 million passengers, the highest for that month, compared to 12.4 million passengers in June 2023. The temporary grounding of Go First in May had a slight impact on overall market capacity.

Despite rapid growth in the Indian domestic aviation market, airlines are struggling due to a severe shortage of aircraft. IndiGo, the largest carrier in terms of both passengers and fleet size, currently operates over 350 aircraft and has placed an order with Airbus for an additional 500. However, maintenance issues have grounded 70 to 80 of their aircraft due to engine problems.

SpiceJet, facing financial challenges, has been actively seeking funds to maintain and deploy its fleet. Akasa Air has not acquired any new aircraft since February, exacerbating the shortage. As a result, the number of operational aircraft in India remains well below the 800 registered to airlines, leading to higher ticket prices. Complaints are widespread that fares are now double the pre-Covid-19 rates.

IndiGo dominates the market with a 60 per cent share, despite the difficulties with aircraft availability and maintenance. The Tata Group, which owns Air India, Air Asia India, and Vistara, collectively holds a 28.7% market share and benefits from the expanding aviation sector.