Continuous addition of capacity by India’s airline companies will help the country’s aviation market overcome the impact of demonetisation, says airline body International Air Transport Association (IATA).
IATA’s observation came, as it announced that ‘the domestic India market topped the growth chart for the second year in a row; passenger volumes surged by 23.3% in 2016 – twice as fast as the next fastest growing market, China.’
“It has not all been positive news over recent months; indeed, the seasonally-adjusted (SA) traffic trend slowed in H2 from its stellar upward trajectory, and business confidence has fallen following the withdrawal of large-denomination banknotes in November. However, airlines are scheduling strong flight frequency growth in 2017, which will translate into time savings for passengers and will have the same stimulatory impact on demand as a cut in fares,” IATA said in its Air Passenger Market analysis for 2016.
The analysis showed that domestic air travel globally rose by 5.7% in 2016.
“All major markets except Brazil showed growth, but India and China, with RPK expansion of 23.3% and 11.7% respectively, were the stand-out performers,” it said.
IATA said that demand in the domestic sector globally (revenue passenger kilometres or RPKs) rose 6.3% compared to 2015 (or 6.0% if adjusted for the leap year).
“This strong performance was well ahead of the ten-year average annual growth rate of 5.5%. Capacity rose 6.2% (unadjusted) compared to 2015, pushing the load factor up 0.1 percentage points to a record full-year average high of 80.5%,” it added. Russell Martin Womens Jersey