Over the past two months several Indian carriers announced mega ticket sales at discounted prices and it is yet to be seen whether such promotional ticket schemes would spur any growth in air traffic
While global air passenger demand rose 2.7% in January year-on-year, Indian domestic air traffic fell by about 5% in the same month.
India’s domestic market was in negative territory with a 4.9% decline in demand and 5.3% capacity reduction. Load factors stood at 75.9%, according to latest statistics of IATA (International Air Transport Association), a body representing 240 airlines that handle about 84% of global air traffic.
The airline body pointed out that one of the major domestic players has effectively exited the market (read Kingfisher Airlines), weak economic growth, rising infrastructure costs and the impact of high fuel prices (being exaggerated by excessive taxation) were the factors affecting air traffic in the country.
However, over the past two months several carriers in India announced mega ticket sales at discounted prices and it is yet to be seen, whether such promotional ticket schemes would spur any growth in air traffic.
In January, international air travel globally expanded by 1.1%, marginally behind a capacity expansion of 1.4%. Load factors were 76.4% in the month, but after seasonal adjustment, the load factor reached a record high, exceeding 80%. China was the second largest market for domestic air travel.
But, overall global air travel demand was up 2.7% on the previous January, slightly ahead of the 2.2% expansion in capacity.
“Passenger travel is growing in line with business confidence levels. Recent months have seen some positive economic signs emerge in both US and China, and the Eurozone crisis seems to have stabilised. Of course, risks remain and the impact of the US budget cuts has yet to play out and fuel prices are high. But even with those headwinds we see underlying support for growth,” Tony Tyler, director general and CEO, IATA said.
In international air traffic, Asia-Pacific airlines captured over half of the growth in demand between October 2012 and January 2013. Middle East airlines posted the strongest growth rate of 14.3% in demand with about 79% load capacity, well above the global average, while Latin American airlines posted the second highest growth in demand at 12.2%. North American carriers saw a marginal expansion of 1.5% in demand, but had the highest load factor of 79.4%, while European airlines were among the weaker performers.
Inside story of the National Stock Exchange’s amazing success, leading to hubris, regulatory capture and algo scam
Fiercely independent and pro-consumer information on personal finance.
1-year online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
30-day online access to the magazine articles published during the subscription period.
Access is given for all articles published during the week (starting Monday) your subscription starts. For example, if you subscribe on Wednesday, you will have access to articles uploaded from Monday of that week.
This means access to other articles (outside the subscription period) are not included.
Articles outside the subscription period can be bought separately for a small price per article.
Fiercely independent and pro-consumer information on personal finance.
Complete access to Moneylife archives since inception ( till the date of your subscription )
