Friday, July 07, 2017

India back at top of domestic air travel growth chart globally: IATA

New Delhi: After a temporary blip, India is back as the world's fastest growing domestic air travel market in May, according to International Air Transport Association (IATA). India saw domestic air travel in May 2017 over same month in previous year grow at 17.7%, followed by China at 16.8%.
IATA had said that India had been the fastest growing domestic aviation market globally for 22 months in a row, while giving the figures for March. But in April, Russia overtook India by witnessing 16.7% growth as opposed to India's 15.3%.
The very next month India got back at the top. IATA said the fastest growing markets — India, China, Russia and Japan — saw double digit growth in domestic air travel with the figures being — 17.7%, 16.8%, 12.8% and 10.3%. However, growth rates in India are moderating from the heady 20% plus seen in past two years. The reason: oil prices are inching up due to which airlines are hiking fares leading to a fall in passenger traffic growth.
"After adjusting for inflation, airfares at the start of the second quarter were around 6% lower than a year ago. IATA estimates that this contributed to around 40% of the annual growth in passenger traffic seen in May. However, the degree of fare stimulus is around half that seen in the second half of 2016. This stimulus is likely to fade further in light of rising airline cost pressures, while business confidence has softened. However, passenger demand is likely to remain well supported during the upcoming peak travel months of July and August," IATA said in a statement.
06/07/17 Saurabh Sinha/Times of India