Mr. Jyoti Roy - DVP - Equity Strategist, Angel Broking Ltd
"As per DGCA total domestic passenger traffic was down by 76% YoY at 28.32 lakh passengers and as compared to 21.07 lakh passengers in July 2020. Indigo continued to remain the largest operator with 59.4% market share and carried a total of 16.82 lakh passengers while SpiceJet carried 3.91 lakh passengers, with a market share of 13.8%. Spicejet reported the highest load factor at 76% while Indigo had a load factor of 65.6%. India had resumed domestic passenger flights on the 25th of May and the number of passengers traveling has improved significantly from 19.84 lakh in June this year to 28.32 lakh in August. We expect domestic air traffic to improve from here on post the Aviation ministry's decision to allow domestic airlines to operate at 60% capacity from September onwards under Unlock 4.0. However the numbers are still likely to remain well below last year's level for some more time and we can expect meaningful improvement in numbers from here on only by the end of Q3FY2021. While we are positive on the sector from a long term perspective we remain cautious from a medium term perspective especially post the rally in aviation stocks."