Graphically Speaking

Flying High

Why is the aviation sector flying high despite low-performance yields?

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Published 7 years ago on May 11, 2017 1 minute Read

As an eventful FY17 draws to a close, the aviation sector continues to fly high, albeit with a disparate performance in yields of major domestic airlines. According to a report by ICICI Securities, for the three quarters of FY17, the divergence can be attributed to the difference in seat share of airlines across different regions. While IndiGo continues to be the market leader, it has seen a lower share in the north and a higher share in the east. On the other hand, SpiceJet leads in north and south, thus helping its aggregate yield. Air Asia and Vistara continue to be marginal players, while Jet Airways continues to lag at the third spot after SpiceJet, though it leads in the west after IndiGo. State-owned airline Air India ranks fourth but ahead of GoAir. According to a report by CAPA, IndiGo will continue to dominate and will end up with a 60% market share over the next two years.