STOCK MARKET BSE NSE

Aviation growth stays flat: IATA

India’s domestic travel fell by 0.7% in June even as capacity expanded by 4.5%. The load factors stood at 74.2%. This is the second month of weak year-on-year growth, and the trend in growth continues to be flat since the start of 2012.

Published: 03rd August 2012 08:09 AM  |   Last Updated: 03rd August 2012 08:14 AM   |  A+A-

Air-India-PTI-L

India’s domestic travel fell by 0.7% in June even as capacity expanded by 4.5%. The load factors stood at 74.2%. This is the second month of weak year-on-year growth, and the trend in growth continues to be flat since the start of 2012.

The International Air Transport Association (IATA) announced global traffic results for June showing a continued slowing of growth in demand for air transport. This is in line with weakness in business and consumer confidence.

The growth trend since early 2012 has seen a slowdown. This is illustrated by isolating the February trend through June that shows 2% annualized growth. That is a major slowdown from the 8% annualized growth rate experienced from mid-2011 through to January 2012.

“The uncertainty that we see in the global economic situation is being reflected in air transport’s performance. Although there are some pockets of solid performance, it is difficult to detect a strong trend—positive or negative—at the global level. The net effect is a demand limbo as consumers and businesses hedge their spending while awaiting clarity on the European economic front,” said Tony Tyler, IATA’s Director General and Chief Executive Officer.

Asia-Pacific carriers reported a 6% growth in demand, which was more than double the 2.9% expansion in capacity for June, when compared to the same month in 2011.

The load factor for the region’s carriers stood at 79.5%. Month-to-month, the demand in the region was basically flat at -0.1%.

All markets, except India, showed an expansion in demand in June compared to the previous year. The slowdown in major Asian economies – China and India - has put a dampener on air freight demand for the airlines in Asia-Pacific.

Stay up to date on all the latest Business news with The New Indian Express App. Download now

Comments

Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the newindianexpress.com editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on newindianexpress.com are those of the comment writers alone. They do not represent the views or opinions of newindianexpress.com or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. newindianexpress.com reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp