Interglobe Aviation Ltd. shares were on the up on Wednesday after a recent announcement by the Directorate General of Civil Aviation which stated that a whopping 23,732 weekly departures have been greenlit for the upcoming winter schedule. This figure is a notable 3.6% jump from the current summer schedule and a significant 8.1% surge from last winter.
What happened? IndiGo, the aviation giant, retains its dominant position, accounting for 55% of the total flights in the schedule. That’s a staggering 11,465 weekly domestic departures. Trailing behind are Air India and SpiceJet, with 2,367 and 2,132 weekly domestic departures, respectively.
The aviation landscape saw a shakeup with Go First ceasing operations in May. They had a substantial 1,538 weekly flights during the summer. Yet, IndiGo’s ambitious plan to ramp up its weekly departures by 1,654 flights this winter will more than fill this void.
Other airlines, including Air India Express, Vistara, and the newcomer Akasa Air, are also set to boost their flight frequencies, propelling the market forward.
See also: How Adani Ports’ New Unit Fits Into Group’s Larger Aviation Play
But how do we measure this growth? One could look at it sequentially, comparing winter to the preceding summer, or seasonally, contrasting winter 2023 with winter 2022. IndiGo’s growth is particularly striking, both in terms of percentage (14%) and sheer volume (1,654 weekly departures).
Compared to last winter, Akasa Air and Star Air are the standout performers, growing by 64% and 61%, respectively. Meanwhile, the Tata Group’s airlines show mixed results, with Air India surging, Vistara slightly contracting, and AirAsia India holding steady.
Despite these impressive numbers, this winter’s schedule is still 3% behind summer 2020’s figures. The aviation industry’s dream of hitting half a million daily domestic passengers might need to be parked for a bit. However, the hope remains that when the skies are bustling with flights, the seats won’t remain empty.
Price Action: Interglobe Aviation Ltd. shares were trading 2.7% higher at ₹2,455.45 on Wednesday close to midday.
Read next: Mukul Agrawal Backed Small Cap Stock Surges 5% After Winning ₹301.5 Cr Order
Don't miss a beat on the share market. Get real-time updates on top stock movers and trading ideas on Benzinga India Telegram channel.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.