India clocks strong domestic aviation market growth in September

India clocks strong domestic aviation market growth in September

India’s domestic aviation sector grew the fastest in September as the country registered double-digit growth for 37 consecutive months, according to global airlines grouping IATA.

In September, India recorded a growth of 15.5 per cent while the global demand stood at 5.7 per cent. “India topped the domestic growth chart again, while domestic US and Australia RPKs both fell in annual terms,” the International Air Transport Association (IATA) said today. Revenue Passenger Kilometres (RPKs) is a measure of demand. For India, the grouping said that year-on-year demand in the domestic aviation sector slowed to 15.5 per cent in September but remained in double-digit territory for the 37th consecutive month. “With the economy looking to have weathered the introduction of a nation-wide sales tax earlier in the summer, the strong upward SA (Seasonally Adjusted) traffic trend has strengthened: domestic RPKs have surged at an annualised rate of more than 40 per cent over the past three months,” IATA said in a report.

India has been registering good growth in recent years on the back of increased passenger demand. Neighbouring China’s growth was 10.1 per cent in September (rpt) September, as per IATA. About worldwide market, the grouping said that after a strong first half of the year and robust growth during the peak Northern-hemisphere summer period, industry-wide RPKs have now grown by 7.7 per cent so far this year to date. “All told, 2017 is set to be another year of above-trend passenger growth, some way ahead of the five-year average pace (6.6 per cent),” it noted.

IATA Director General and CEO, Alexandre de Juniac said global economic conditions support rising passenger demand, but with higher cost inputs, the demand stimulation from lower fares has waned, suggesting a moderating trend in traffic growth. IATA represents nearly 275 airlines that account for 83 per cent of global air traffic.


News Source: PTI

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