India’s domestic market grows in June
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India’s domestic air travel market grew 7.7% in June year-on-year.
According to the statistics released by the International Air Transport Association (IATA), the growth was way ahead of load factors reached 81.5%. Reductions in the domestic fares may be leading to increased demand, but it is difficult to discern the true strength of the Indian market due to the volatility of month-to-month traffic.
Total domestic air travel performed strongly in June, with growth of 6.1% compared to June 2012, and growth in all major markets. Domestic capacity expanded by 5.2% leading to a load factor of 82.0%. The United States saw domestic growth of 2.4% in June, while Chinese domestic market grew 14.6%. Brazilian domestic travel was up 3.2% compared to June 2012, while Russia posted the second-strongest domestic growth rate in June, up 9.8% on a year ago.
International air travel expanded strongly, up by 5.9% in June compared to a year ago. June capacity grew in line with this (5.7%) resulting in a June international load factor of 81.4%. European carriers recorded 4.7% growth over the previous June, while Asia-Pacific carriers grew by 5.5% on international routes.
“June was a positive month for passenger markets. The stability in the Eurozone, albeit tentative, is giving a boost to business and consumer confidence. And the load factor at 81.7% shows that airlines are efficiently meeting increasing demand for travel. The industry is still on track to make US$4.00 per passenger this year for a global net profit of US$12.7 billion. But there is little margin for error and even a small change in the second half of the year could shift the outlook significantly,” said Tony Tyler, IATA’s director general and CEO.
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