Ups And Downs In Airline Stocks As January Data Reveals Surprising Stats

Shares of Interglobe Aviation, the parent of IndiGo, were dipping after a slight dip in the airline’s market share in January. Meanwhile, SpiceJet shares surged as the troubled airlined was able to hold on to its market share.

What Happened: According to data from the Directorate General of Civil Aviation (DGCA), IndiGo, holding the largest market share, saw a marginal decrease to 60.2% in January from 61.8% in the previous month.

Cash-strapped SpiceJet maintained its market share at 5.6% during the period.

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IndiGo’s passenger load factor stood at 88.4%, down from 90.7% in December, while SpiceJet’s remained stable at 93.7% compared to 93.5%.

In January, the overall cancellation rate for domestic airlines was 3.67%. IndiGo accounted for 5% of flight cancellations, SpiceJet for 3.48%, Air India for 2.06%, while Vistara and Akasa Air recorded cancellation rates of 0.86% and 0.17%, respectively.

Earlier reports suggested that IndiGo was discussing with the Centre to reduce cancellations to and from the Mumbai airport, potentially affecting six to 12 flights, following government directives.

Price Action: IndiGo’s share price was down 0.18% at ₹3,023.25 in morning trade. SpiceJet’s shares were skyrocketing 10.31% to ₹70.19.

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