Domestic airlines are anticipating a surge in their seat factor following the sharp reduction in fares for the August-October period. The revenue is expected to help the airlines recover part of their operational costs in the lean season.
Indian Airlines (IA) officials told Business Standard they expected a 5 per cent increase in their seat factor from the existing 50-54 per cent. At the current level, IA is able to fill only 17,000 of its total seat capacity of 34,000 per day. This drops 5-8 per cent in the lean season.
The peak season (November-April) has been bad for the airline, which saw a dip of 3-5 per cent from its usual high seat factor of 70 per cent. The airline, therefore, feels that the fare cut will help reverse the dry run by creating a new category of leisure travellers