Motilal Oswal’s sector report on Aviation
Domestic air passengers in India grew 12.5% YoY to 9.5m in July 2017 (v/s +20% YoY in June2017). Apart from seasonal weakness, domestic passenger growth was slower due to engine issues faced by IndiGo (+9.3% YoY) and Go Air (+3.6% YoY). nDomesticASK growth in July was13% YoY(v/s +14% YoY June 2017)andRPK rose 12%YoY (v/s +21% in June2017).Due to engine issues, IndiGo’s ASK/RPK grew 6% YoY, the slowest pace in the last three years.nDomestic industry load factor stood at 83.2% in July 2017 (v/s 85.9/88.9% in June/May 2017). IndiGo’s load factor stood at 83.7% v/s 87.8/91% in June/May 2017.
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