India continues on double-digit annual traffic flight path: IATA

 A sizeable increase in real consumer spending and airlines increasing flight frequencies has propelled India’s growth in domestic air traffic, the International Air Transport Association (IATA) said on Friday.

In its latest report, IATA said that there continues to be “little sign of any slowdown in growth” in the domestic India and China aviation markets, with domestic traffic surging by 23.6%, and 14%, year-on-year, respectively, in September.

“Such strong growth rates relate to sizeable increases in real consumer spending in both countries, although growth in India is well ahead of what the usual elasticities would imply. This is partly because airlines are adding airport-pairs and flight frequencies, which reduce journey times for passengers and has the same stimulatory effect on demand as a cut in fares,” it said.

Both Indian and Chinese airlines have increased the number of airport-pairs served in 2016, but average flight frequencies in China have fallen compared with last year, it noted.

Globally, the domestic demand climbed 7.2% in September, compared with the same month last year, which was up from the 4.1% year-on-year growth recorded in August.

“September’s growth in passenger demand was healthy. Importantly, this rebound from an August weakness suggests that travel demand is showing its resilience in the aftermath of terror attacks. We must, of course, be ever-alert to the ongoing terror threat. And overall the industry is still vulnerable to being buffeted by rising geopolitical tensions, protectionist political agendas, and weak economic fundamentals.

This will still be a good year for the airline industry’s performance, but our profitability will continue to be hard-won," IATA Director General and Chief Executive Officer Alexandre de Juniac said.