July 2013 U.S. airline traffic data shows system passengers unchanged from 2012

By BA Staff

Courtesy of Bts.gov

The U.S. Department of Transportation’s Bureau of Transportation Statistics (BTS) reported that U.S. airlines carried 69.2 million systemwide (domestic + international) scheduled service passengers in July 2013, the same as in July 2012. The systemwide total was the result of a 0.7 percent decrease in the number of domestic passengers (59.3 million) and a 4.3 percent increase in international passengers (9.9 million).

BTS, a part of the Department’s Research and Innovative Technology Administration, reported that U.S. airlines carried 0.4 percent more total systemwide passengers during the first seven months of 2013 (435.0 million) than during the same period in 2012. Domestically, U.S. airlines carried 377.2 million passengers, 0.1 percent more than 2012. Internationally, they carried 57.8 million passengers, up 2.7 percent from 2012. See Tables 2, 8 and 14 of Air Traffic Press Releases for previous-year data.

The July 2013 international load factor of 86.9 percent was a record high for the month of July as year-over-year growth in revenue passenger-miles exceeded international capacity expansion. Systemwide and domestic load factors remained below the all-time July highs reached in 2011. Load factor is a measure of the use of aircraft capacity that compares Revenue Passenger-Miles (RPMs) as a proportion of Available Seat-Miles (ASMs).

 

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Air traffic plunges 11.5%, as air fares rise. Jet Airways group crashes almost 21%, IndiGo down 11%.

Talk about irony. In March this year, Dr. Dinesh Keskar and Bangalore Aviation were discussing the double digit, yet profitless growth occurring in the Indian airline industry.

Less than six months later, air traffic continues its fifth consecutive month of decline. Within, just the third calendar quarter, (second quarter of the fiscal year 2012~13), air traffic plunged over 11.5%, from 4.537 million passengers in July, to 4.018 million in September. August at 4.369 million passengers was down 3.7% from July, and September was down 8.03% from August.

No airline could avoid the contagion. Jet Airways group is down a whopping 20.63% for the quarter, dropping from 1.207 passengers in July to 0.958 passengers in September. Even market leader IndiGo which is steadily growing its fleet, is down a significant 10.77%. SpiceJet is down 8.04%, Air India down 5.95%, and Kingfisher down 9.62%. GoAir performed the best, losing 2.85% of its passengers.

Year on year for the nine month period January to September this year 43.839 million passengers travelled by air domestically, compared to 44.218 million last year. Down 0.9%.

For the month of September, IndiGo continued its market leadership, but it appears the fare war unleashed by Air India has gained it passengers at the expense of all other airlines. Air India even beat Jet Airways, carrying 0.775 million passengers compared to 0.729 million by Jet Airways.

Put the blame for this contraction on the significant increase in airfares over the last six months, driven by the collapse of Kingfisher Airlines. Airlines are reducing the excess capacity, which has already increased fares over 20%. For the winter schedule which commences October 28, Indian carriers will fly 20% less flights than last year. 10,935 vs. 13,541 flights per week. Experts, expect air fares to rise another 10%~15% during the winter season which is also highest in terms of demand.

No airline crossed a passenger load factor of 70%, even the traditional leader IndiGo which used to regularly be in the top of the eighties or low nineties.

How will this capacity decrease impact passenger numbers? What is your view? Share a comment.

Also, do you think such major fare increases bodes well for the Indian consumer? Share your thoughts.

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IndiGo pips Jet to become largest domestic carrier in India. Mumbai airport most punctual.

Carrying 1.226 million passengers in July 2012, Gurgaon based IndiGo pipped the Jet Airways' group (Jet Airways and JetKonnect) at 1.207 million, to become the largest domestic carrier in India. IndiGo's market share has grown to 27.02%, at the expense of a failing Kingfisher Airlines whose market share has declined to a mere 3.44%.

The country's aviation regulator reports based on passenger traffic data submitted by various domestic airlines. Total passengers for July 2012 was 4.537 million, down almost 10% from the 5.108 million of June. The ending of the summer holidays, as well as dampening due to rising airfares are the primary factors.

Year to date from January to July 2012 the total domestic passengers are 35.452 million up a meagre 1.74% from 34.847 million for the same period in 2011.

Growth rates have been steadily declining in both seat capacity, measured in available seat-kilometres (ASK) and, passenger demand, measured in revenue passenger-kilometres (RPK). From a high of almost 20% a year ago, demand is in negative figures and capacity is flat for the last three months.

IndiGo's secret sauce of high punctuality, coupled with a 'no-fuss no-frills' service has continued to hold it in good stead. From the past few months, the DGCA has been collecting and presenting 'On-Time Performance' (OTP) reports, based on data from the six largest airports in India. IndiGo leads the airlines across the country with 90+ OTP performance.

Mumbai airport enjoys the best OTP across all airlines with OTP scores of 90 or higher. Is it a function of larger block times, which give cushion to airlines, or a positive response by airlines, airport operations, and ATC to the DGCA diktat issued in 2009 to streamline operations? May be it is a combination of both. But ultimately, all long as results are being delivered, the passengers couldn't care less.

Time for Delhi airport to pull up its socks, and for Bangalore to work closely with SpiceJet and Air India to get in to the '90+ club'.

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