Friday, July 07, 2017

India's 2-year-long double digit growth in the domestic aviation market to end: IATA

Global airlines' body IATA has warned that India's over two-year-long uninterrupted double-digit growth in the domestic aviation market is set to end this month, saying the domestic traffic has been witnessing a slowdown since demonetisation.
India's 2-year-long double digit growth in the domestic aviation market to end: IATA

Global airlines' body IATA has warned that India's over two-year-long uninterrupted double-digit growth in the domestic aviation market is set to end this month, saying the domestic traffic has been witnessing a slowdown since demonetisation.

"The very strong upward SA (seasonally-adjusted) traffic trend has slowed since the unexpected 'demonetisation' in November 2016, in line with the wider impact that this looks to have had on economic activity."

"At the current trend, India's impressive run of double- digit year-on-year growth rates looks set to end in July," said International Air Transport Association (IATA) in its monthly report.

The domestic air traffic in the country has seen an impressive double-digit growth since January 2015, which petered out early this year.
From January 2016 until February 2017, India saw over 20 percent growth for 14 consecutive months, as per government data.

In March, however, the growth dropped to 18.59 percent. It slowed down further in April (17.71 percent) and May (17.63 percent).

At the same time, India also lost its fastest growing domestic aviation market tag after a gap of 23 months.

In March, domestic growth in China (15.1 percent) outpaced India's (14.6 percent), as per IATA.
06/07/17 PTI/moneycontrol.com

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