Indian domestic market up 6% in July
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India’s domestic market increased 6% in July year-on-year.
According to the data released by the International Air Transport Association (IATA), the July growth reversed the 2.4% decline in June. Continuing volatility over recent months has made it difficult to establish a clear growth trend. Capacity rose 4.9% and load factor climbed 0.7 percentage points to 69.3%.
With the exception of Brazil, all domestic markets experienced demand growth in July, but rates among countries varied significantly. Total traffic climbed 4.8% but this was exceeded by a 5.8% rise in capacity and load factor slipped to 82%. Russia experienced the strongest growth, with domestic traffic up 11.9% over July 2012, while China’s domestic market climbed 10.7% compared to July 2012. The US domestic market was up 1.5%, whereas Japan showed another month of strong growth with demand up 5.7% in July.
July’s international passenger traffic climbed 5.1% compared to the year-ago period. Capacity rose slightly faster at 5.4%, causing load factor to slip 0.2 percentage points to 82.7%. Performance across all regions was positive.
IATA stated that overall revenue passenger kilometers (RPKs) were up 5% compared to July 2012. All regions were up year-on-year, with emerging marketing recording the strongest increases. Capacity rose 5.5% on the previous July, ahead of demand, and industry load factor dropped 0.4 percentage points to 82.4%.
“Passenger demand continues to be strong. But the story of emerging markets driving growth as developed economies stagnate could be shifting. We are still expecting growth of 5% this year. How that growth is achieved, however, appears to be a turning point. The emergence of the Eurozone from an 18-month recession provided the biggest boost to traffic over recent months. In contrast, the deceleration of the Chinese economy has been a dampener on air travel, with weakness showing up throughout emerging Asian markets. The price of oil, a huge cost item for airlines, is tracking political tensions in the Middle East. Along with the global cost impact of this, at the regional level there is the potential for disruption for one of aviation’s strongest and most consistent growth markets.” Tony Tyler, IATA’s Director General and CEO.
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