Shares of SpiceJet, InterGlobe Aviation (IndiGo) gained on September 16 after data released last week showed that competition among domestic airlines in India is heating. The market share of India's largest airline, IndiGo, grew in August and July after falling 80 basis points in June.
The airline's market share now stands at 62.4 percent, with the low-cost carrier flying 81.90 lakh passengers in August.
At 9:35 am, IndiGo shares were trading hald a percent higher at Rs 4,964.45 on the National Stock Exchange (NSE). The stock has rallied 66 percent so far this year, outperforming Nifty's returns of 14 percent.
In the past 12 months, IndiGo share price has zoomed 106 percent, more than doubling investors' capital. In comparison, Nifty rose 28 percent during this period.
SpiceJet stock gained over 3 percent to trade around Rs 73.98 on BSE despite the air carrier hitting new lows in August with its market share shrinking by 80bps month-on-month (MoM) to 2.3 percent, largely due to financial woes and increased grounding.
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In the last one year, SpiceJet share price has surged around 94 percent, nearly doubling investors' capital.
Overall, the country's domestic air traffic in August rose 5.7 percent compared to the same month last year. The number climbed to 1.31 crore passengers, data released by the Directorate General of Civil Aviation (DGCA) on September 13 showed.
Passenger load factors (PLFs) declined across key airlines with SpiceJet recording a sharp monthly dip of 930bps, resulting in its Aug-24 PLF coming in at 81 percent. PLF for Indigo fell by 230bps
While Indigo’s On-time performance (OTP) recovered to 66 percent from 62 percent MoM, SpiceJet clung to the bottom rung with OTP at 31 percent. Cancellations eased up last month with SpiceJet recording the highest cancellation rate of 2.57 percent followed by AIX Connect and Indigo at 1.38 percent and 0.64 percent, respectively.
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