Indian domestic traffic up 3.5%
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Indian domestic traffic rose 3.5% against a 0.3 decline in capacity in May 2013.
According to the data released by IATA, the load factor also saw an increase of 3.0% points to 81.6%. The May result is a rebound on April, when the market had contracted. In fact, there has been substantial volatility in growth rates over recent months. Reductions in domestic fares had resulted in stronger demand in March and possibly again in May, but this trend has not been consistent and when coupled with a weak economic backdrop, a growth trend is difficult to establish.
Other domestic markets like China also saw an increase of 13.4% while Japanese market surged at 5.9%. The US traffic demand rose 4.3%, while Australian domestic demand increased 2.3% in May.
Globally, international air passenger demand rose 5.7% compared with a year-ago period. Capacity was up 5.6%, while load factor was flat at 77%. Passenger capacity climbed 5.2%, pushing the load factor up to 0.3% points to 78.1%. The strongest growth occurred in emerging markets of Africa, Latin America and the Middle East.
Tony Tyler, director general and CEO of IATA said, “Global economic performance remains a concern, however, demand for air travel continue to expand. The primary driver is growing demand for connectivity to emerging markets. The business environment has also improved compared to mid-2012 with some indication of easing weakness in the Eurozone. It’s still a tough environment, but there are some reasons for optimism in the second half of the year.
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