IATA report shows India’s robust domestic air travel demand

China, Japan and Russia also contribute to Asia Pacific growth

Aviation

July 13, 2017

/ By / Kolkata



India's air travel industry provides a solid growth framework for the Asia Pacific Market

India’s air travel industry provides a solid growth framework for the Asia-Pacific Market

The global air traffic results for the month of May reports show a rise of 7.7 pc in passenger demand for the month of May, reports IATA. India along with China, Japan, and Russia with a robust domestic market adds to the steady Asia-Pacific air travel performance.

The domestic demand rose 7.9 pc in May compared to May 2016, down slightly from the 8.1 pc year-on-year growth recorded in April. Results varied widely, with China, India, Japan and Russia showing double-digit percentage growth while other regions were in the low single-digit range. The air passenger demand (measured in revenue passenger kilometres, or RPKs) rose 7.7 pc compared to the same month in 2016. This was slower than the 10.9 pc growth recorded in April. However, this still was well ahead of the five and 10-year average growth rates. Capacity climbed 6.1 pc, and load factor rose 1.2 pc points to 80.1 pc, which was a record high for the month.

The International Air Transport Association (IATA) observed that the adjustment of inflation helped in the drop of airfares worldwide at the start of the second quarter leading to two-fifth of the annual growth in passenger traffic this May.

“Passenger demand is solid. And we don’t foresee any weakening over the busy summer months in the Northern Hemisphere. But the rising price of fuel and other input costs is likely to see airlines’ ability to stimulate markets with lower fares taper over the coming months. In parallel, rising trade protectionism and barriers to travel are worrying trends that, if unchecked, could impact demand. As business airlines depend on borders that are open to trade and people,” said Alexandre de Juniac, IATA’s Director General and CEO.

Indians flying more often

Asia-Pacific airlines saw their traffic rise 10.5 pc in May compared to the year-ago period. Capacity increased 7.2 pc, and load factor jumped 2.3 percentage points to 77.6 pc. Traffic on the Asia-Europe route has recovered strongly since last year’s terrorism-related disruption, surging at an annualised rate of more than 26 pc since November. Meanwhile, traffic on inter-Asia routes remains robust.

The domestic demand rose 7.9 pc in May compared to May 2016, down slightly from the 8.1 pc year-on-year growth recorded in April. Results varied widely, with China, India, Japan and Russia showing double-digit percentage growth while other regions were in the low single-digit range.

In terms of the domestic RPKs, the large markets in India, China, and Japan mean that domestic travel accounts for 45% of the region’s operations.

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