India’s domestic traffic falls marginally
Contributors are not employed, compensated or governed by TD, opinions and statements are from the contributor directly
India’s domestic market registered a marginal fall in June 2012. According to the latest data from IATA, domestic air traffic fell 0.7% in June 2012 even as capacity expanded by 4.5%. The country’s load factor was 74.2%. The month of June appears to be the second month of weak year-on-year growth, while the trend in growth continues to be flat since the start of 2012.
Economic slowdowns in various countries are keeping the growth trend in domestic market soft throughout 2012. The first six months of 2012 have seen overall domestic air travel growth slow to a 2% annual rate, after increasing at more than 6% annual growth over the second half of 2011. Overall domestic demand grew by 4.1%, slightly ahead of capacity which grew by 3.6% and load factor stood 8.1%. Other domestic markets like Japan continued to look flat, while Brazil recorded a double-digit growth of 13.8% and China grew 7.8%.
Further, IATA revealed that international passenger markets was up 7.4% on the previous year. European airlines experienced strong growth (7.3%), North American airline saw (1.6%), while Asia Pacific-based carriers climbed 6.0% year-on-year during the month. Middle East carriers showed the strongest performer with growth at 18.2% outstripping a capacity expansion of 13.4%.
“The uncertainty that we see in the global economic situation is being reflected in air transport’s performance. Although there are some pockets of solid performance, it is difficult to detect a strong trend—positive or negative—at the global level. Passenger markets have been growing more slowly since the beginning of the year and freight markets gains have been mostly very weak. The net effect is a demand limbo as consumers and businesses hedge their spending while awaiting clarity on the European economic front,” said Tony Tyler, IATA’s Director General and CEO.