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Aviation Stocks Soar High: This marks the first instance that domestic air traffic breached the 5,00,000 mark in a single day.
Domestic air traffic crosses 5 lakh in a single day
Interglobe Aviation and SpiceJet shares gained 3 per cent in Tuesday’s intraday trade after the domestic air traffic crossed 5 lakh in a single day for the first time. The surge came amid festive and wedding seasons as airlines carried over 5 5,00,000 passengers on November 17 and flight departures stood at 3,173.
According to reports, the spike in the domestic air traffic was amid festive and wedding seasons. Domestic airlines carried 5,05,412 passengers on November 17 and the number of flight departures was at 3,173.
This marks the first instance that domestic air traffic breached the 5,00,000 mark in a single day.
The Ministry of Civil Aviation hailed this historic milestone in its post on ‘X’. “On November 17, 2024, Indian aviation marked a historic milestone as 5,05,412 domestic passengers flew in a single day, surpassing the remarkable 5-lakh passenger threshold. This reflects the sector’s rapid growth and the increasing trust of Indians in air travel’s accessibility and reliability,” the ministry posted.
Should You Invest In IndiGo?
In a recent note, Goldman Sachs maintained a “buy” rating on IndiGo and shared target price of Rs 4,800 per share. The October or November air traffic growth stood at 10 per cent/11 percent. IndiGo’s PLF was at 90 per cent versus 85.6 percent last year.
“While yields are down YoY, given improved domestic traffic growth and higher PLFs, there could be upside to guidance,” they added.
In the second quarter, IndiGo slipped back into red to Rs 986 net loss compared to net profit of Rs 189 crore. This was primarily caused by increased fuel expenses and a record number of groundings. The operator of low-cost airline’s revenue from operations, however, surged 13.6 per cent YoY to Rs 16,969.6 crore in Q2FY25.
Who Is The Leader Of The Indian Skies?
According to DGCA, IndiGo’s market share further increased to 63 per cent in September, while Air India climbed to 15 per cent, Akasa Air was at 4.4 per cent, and SpiceJet dropped to 2 per cent. Domestic air passenger traffic rose 6 per cent to 13 million in September. On the other hand, domestic carriers flew 1.30 crore passengers as compared to 1.22 crore passengers, up 6.38 per cent YoY.
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