After a lacklustre air travel season, owing to factors like steep air fares and the economic slowdown, airlines have a reason to rejoice. Research firm Aviation Centre of Excellence (ACEXC) has, in its latest report, revealed that domestic traffic has displayed marginal signs of revival, despite the downturn.

Flag carrier Air India ferried 57,000 passengers in February 2009, compared to 55,000 in January and 53,000 in December 2008 respectively. Jet Airways, on the other hand, showed minimal improvement; it flew 59,700 passengers in February, compared to 59,600 passengers in January and 55,500 in December respectively. Kingfisher Airlines registered flat passenger figures at 90,000 for the past three months.

Industry observers say that in a bid to improve occupancy, airlines have lowered their fares compared to the peak fare structure in September and October, 2008; as a result, air traffic has improved.

“Airlines aggressively pursued sales and market share to help sustain better load factors in the lean season of January and February,” said an analyst. The reduction in aviation turbine fuel prices, from an all time high of $147 a barrel in August 2008 to $43 a barrel in January 2009, encouraged airline operators to slash fares, added the analyst.

At the onset of 2009, airlines introduced low fares and seasonal discounts to woo passengers. Apart from Air India, Jet and Kingfisher reducing fares on their domestic network by 40%, low cost carriers like SpiceJet and Indigo also announced special fares beginning at Re 1, with effect from January 2. The Re 1 fare was applicable for tickets booked 21 days prior to the day of travel.

Incidentally, airlines slashed fares responding to civil aviation minister Praful Patel’s calls for the same following the reduction in aviation turbine fuel rates. The minister had, in December 2008, said, “Airlines must reciprocate the government's gesture to help the aviation industry, which has been going through rough weather this year. We supported the industry when they were in difficulty. We gave them extended credit, staggered repayment of their dues and abolished customs duty on ATF.”

Marginal improvement

•       Air India ferried 57,000 passengers in Feb '09, compared to 55,000 in Jan '09 and 53,000 in Dec '08

•       Jet Airways ferried 59,600 passengers in Jan '09 and 59,700 in Feb '09, compared 55,500 in Dec

•       SpiceJet carried 39,300 passengers in Jan and 41,300 in Feb, compared to 37,300 in Dec '08

•       JetLite ferried 24,900 passengers in Feb compared to 24,100 in Jan...