25% growth in domestic air traffic in Nov

IATA LogoThe domestic passenger air traffic in India has recorded very strong growth, up 25.1 per cent, during November 2015 compared to the same period in 2014. This was revealed by the International Air Transport Association (IATA), which released global passenger traffic results for November 2015, showing a continued strong traffic growth above the 10 year average rate of 5.6 per cent. The improvements in industry load factors have been largely driven by domestic markets, particularly in India, where there has been a significant improvement in matching capacity to demand and on-going economic strength, according to the report. Globally, domestic travel demand rose 6.4 per cent in November compared to November 2014 but results were mixed, with Brazil, Russia and Japan all showing declines. Total revenue passenger kilometres (RPKs) rose 5.9 per cent compared to November 2014. Though this is a weaker result than the October figure of 7.1 per cent but this has been termed as very healthy rate of growth despite factors which are likely to have a temporary affect. Data for the first ten months of the year show a 5 per cent decline in average fares in currency-adjusted terms. November capacity (available seat kilometres or ASKs) increased by 4.2 per cent, and load factor rose 1.3 percentage points to 78.0 per cent. “The airline industry is delivering solid financial and operational performance. The industry’s return on capital for 2015 and 2016 is expected to exceed its cost of capital, a very rare occurrence. This means we are on the path toward financial sustainability. Consumers are benefiting from lower fares, and airlines are able to invest in new aircraft that are more comfortable, quieter and more environmentally friendly,” said Tony Tyler, Director General & CEO, IATA. He also added, “Passenger demand remains strong; however, the on-going turmoil in the global financial markets and concerns over slowing economic growth in China are casting a shadow over the New Year. 2016 will be a historic year for aviation as States come together at the 39th International Civil Aviation Organization Assembly to discuss, and I hope agree,  a market-based-measure that will allow airlines to achieve carbon-neutral growth from 2020.”