Livemint: December 05, 2017
New Delhi: India’s domestic air traffic clocked double-digit growth for the 38th straight month in October, at a rate double that of China, the International Air Transport Association (IATA) said on Monday.
“India topped the domestic growth chart once again,” IATA said in a report, adding, “Year-on-year growth in domestic India... increased to a ten-month high of 20.4% in October—its 38th month in double-digit territory.”
Domestic air traffic in China grew 10%, Brazil 7.7%, Russia 6.1%, the US 5.3%, Australia 2.8% and Japan 2.3%.
“Brazil’s domestic market climbed 7.7% year-on-year in October, which was a 27-month high as the economy slowly continues to recover from the deep recession of recent years. Russia’s domestic traffic rose 6.1% in October, which was the slowest pace in a year,” it added.
Globally, passenger traffic demand rose 7.2% compared to the same month last year, while capacity grew 6.2% and load factor climbed 0.8 percentage points to 80.8%.
“As expected, the recent severe weather in the Americas region had only a temporary impact on the healthy travel demand we have seen this year, and we remain on course for another year of above-trend growth,” Alexandre de Juniac, IATA’s director general and chief executive said in the report. “Demand for air travel remains strong as we head into the holiday travel season, and signs point to the broad-based economic upturn continuing into 2018, which is good news for demand for air travel,” said de Juniac.
India is set to become the third largest aviation market by 2025, toppling the UK, IATA had said in October. China will be the top market, followed by the US. By 2036, India will have about 478 million air passengers, more than that of Japan (just under 225 million) and Germany (just over 200 million) combined.
India’s current passenger traffic is about 141 million.
Indian airlines have over 800 planes on order and are set to add 350-400 aircraft in the next five years alone. All Indian airlines put together have a fleet of around 500 aircraft currently.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.