Airlines yet to exit turbulence
Mint Mumbai|January 06, 2023
The Indian aviation sector did not see much disruptions to demand in CY22, in spite of fare hikes. Yield, a measure of pricing, was healthy, implying the market absorbed the higher air fares.
Vineetha Sampath
Airlines yet to exit turbulence

The strength in yields was supported by a robust domestic demand environment led by a surge in leisure and corporate travel. Besides, international travel resumed after a two-year hiatus.

As the chart alongside shows, the number of passengers carried by domestic airlines in 2022 gradually inched closer to the pre-covid (2019) levels. In fact, in December, domestic passenger traffic surpassed 2019 levels, according to the ministry of civil aviation.

Consequently, in the half-year ended September (HIFY23), InterGlobe Aviation Ltd's average yield stood at 15.15. This is roughly 34-36% higher year-onyear (y-o-y) and versus HIFY20 levels. InterGlobe runs IndiGo, India's largest domestic carrier by market share. 

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