Airline traffic takes off in first two months of 2015

A spate of flash sales offered by domestic carriers in the first two months of 2015 has significantly improved the air passenger traffic in the country. As per data from aviation regulator DGCA (Directorate General of Civil Aviation), passenger traffic has grown by 21.63 per cent in February this year compared to the corresponding period last year. That is slightly higher than the January growth figure of 21.33 per cent.

In fact, the February passenger growth is the highest in recent months. Passenger traffic growth in the last three months of 2014 was below 20 per cent. In the first two months of this calendar year, 12.26 million passengers flew via domestic carriers, a significant jump over the 10.09 million passengers for the same period of 2014.

Higher passenger traffic in the first quarter is unusual especially because it is considered a lean period for the sector. But almost all carriers went the whole hog in doling out heavy discounts on fares. It started off with state-run carrier Air India launching "Spring Sale 2015" scheme under which it reduced fares on various local routes by some 50 per cent for seven days. A day later, Jet Airways slashed fares by up to 50 per cent for six days. Even loss-making SpiceJet has announced more than six flash sales since the airline got a new promoter. The launch of Vistara in January also contributed to the rise of passenger traffic.

Overall, in 2014 (January to December), a total of 67.38 million passengers travelled with domestic carriers as against 61.43 million in 2013, registering a growth of 9.7 per cent.

It is believed that airlines are expected to perform better this year, partly due to sharp drop in aviation turbine fuel (ATF) prices. The ATF, which contributes to roughly 50 per cent of the total costs for airlines, has dropped by nearly 36 per cent since October 2013 when it reached an all-time high of Rs 77,089.42 per kilolitre. The airlines have been prompt in adjusting their fares to spur demand in the market.