Air traffic declines first time in four years on back of rising fares

New Delhi: Air traffic growth contracted in June for the first time in nearly four years as rising fares deterred travellers, and at least one airline executive said he expects the decline to accelerate.
The number of passengers carried by India’s airlines declined 3.8% to 3.5 million in June, traditionally a strong month in the aviation business, from 3.64 million a year earlier, according to data released by the Directorate General of Civil Aviation (DGCA) on Friday. Historically, July-September is a lean period for India’s airlines, which profit from traffic growth in June, when summer vacations are on.
In May, airlines carried 4.11 million passengers, a rise of 6.8% from 3.85 million a year earlier.
Rising jet fuel prices—which have almost doubled in the past year—have forced airlines to pass on the increase to passengers. Airlines are piling up losses and deferring new aircraft inductions as they are buffeted by rising costs, including fuel prices.
All the country’s 10 airlines flew fewer passengers per flight in June.
For the first six months of the year, passengers flown expanded a modest 7.5% from the first half of 2007. Between January and June this year, airlines carried a cumulative 22.7 million passengers compared with 21.12 million in the first half of 2007.
12/07/08 Tarun Shukla/Livemint

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Categories: Indian Aviation- In General Jul 2008