CHENNAI: There is an 18.6 per cent annual increase in domestic aviation sector considering the rise in Indians preferring to fly across the country last year, according to an International Air Transport Association (IATA) report.
The report states that the country’s domestic market posted the fastest full-year domestic growth rate for the fourth consecutive year, with an 18.6 pc annual demand increase. It says that India recorded its 50th consecutive month of double-digit annual growth in October.
“Domestic demand in India is underpinned by robust economic expansion and increasing numbers of city pairs,” says the report.“While globally, domestic air travel climbed 7 per cent last year, which remained unchanged from the rate in 2017. All markets showed annual growth, led by India and China, which both posted double-digit annual increases,” the report added.
Industry-wide revenue passenger kilometres (RPKs), an airline industry metric that shows the number of kilometres travelled by paying passengers, rose by 6.5 per cent in 2018 as a whole. While this was another year of above trend growth, the pace was slower compared to 2017 (8.0 per cent).
The moderation in traffic came alongside growing signs of slowing global economic expansion in the second half of last year. Indeed, passenger volumes have grown at five per cent annualised pace over the course of second half of 2018 compared to around nine per cent earlier in the year.
On top of that, while lower average airfares still provided support to RPKs during 2018, the impetus was not as strong as in the previous years due to global geo-political developments and issues such as Brexit and rising US-China trade tensions.