India’s domestic market continues to grow
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India’s domestic traffic grew 16.4% in September, following a strong growth in August (18.5%).
Capacity rose 5.7%, pushing up load factor 6.6 percentage points to 71.5%. The improvement over recent months is inconsistent with continued weakness in the economy and could be reflecting fare discounting. The year-to-date growth (4.0%) is a significant improvement on 2012, when the market contracted 2.1%
According to the International Air Transport Association (IATA), overall domestic travel climbed 5.1% in September compared to a year ago, with all markets showing year-on-year increase. China’s domestic market grew 10.6%, United States (1.4%), Japan (7.8%), Brazil (1.0%), Russia (12.1) and Australia (2.6%).
International passenger demand also rose 5.7% compared to the same period in 2012. An equivalent increase in capacity led to load factor remaining unchanged at 80.9% when compared to September 2012. “We are seeing a more positive environment for air travel demand, based on rising business confidence, a strong increase in export orders in September, and better performance of key emerging markets like China. The strong growth of recent months, coupled with the continuing improvements in air travel demand in September, suggests that there could be a further acceleration in air travel growth before the end of the year,” said Tony Tyler, IATA’s director general and CEO.
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