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5 July 2018
Domestic air (The Total Investment & Insurance Solutions) |
India registered double-digit domestic air
passenger growth for the 45th straight month in May even though volumes have
fallen in recent months, airlines’ grouping IATA said today. The International
Air Transport Association (IATA) said the country’s Revenue Passenger Kilometre
(RPK) — a measure of passenger volumes — rose 16.6 per cent in May.
Seasonally-adjusted passenger volume in India has fallen back in recent months
alongside some mixed signs on the economic front, it said. “Nonetheless, the
bigger point is that May was India’s 45th consecutive month of double-digit
annual RPK growth (16.6 per cent). “Passenger demand has continued to be
supported by strong growth in the number of airport connections within the
country too; 22 per cent more airport-pairs are scheduled to operate in 2018
compared to last year,” IATA said.
While industry-wide RPK increased marginally
to 6.1 per cent in May, the grouping said growth this year is expected to slow
slightly due to reduced stimulus from lower airfares and a more mixed economic
backdrop. Still, IATA said it expects 2018 to be another year of above-trend
passenger growth.
Carriers based in Asia Pacific once again
posted the fastest international RPK growth rate, the grouping said, adding
that it estimates that India and China account for around three-quarters of the
slowdown in overall domestic RPK growth between May and April. IATA Director
General and CEO Alexandre de Juniac said May was another solid month in terms
of demand growth.
“As had been expected, we saw some
moderation, as rising airline costs are reducing the stimulus from lower
airfares. In particular, jet fuel prices are expected to be up nearly 26 per
cent this year compared to 2017,” he added. Last month, IATA projected an
industry profit of USD 33.8 billion for this year. “But our buffer against
shocks is just USD 7.76.
That’s the average profit per passenger that
airlines will make this year — a narrow 4.1 per cent net margin,” he said.
Striking a note of caution, he said there are storm clouds on the horizon,
including rising cost inputs, growing protectionist sentiment and the risk of
trade wars as well as geopolitical tensions. “Aviation is the business of
freedom, liberating people to lead better lives.
Governments that recognise this will take
steps to ensure aviation is economically sustainable. And aviation works best
when borders are open to trade and people,” de Juniac said. IATA represents
nearly 290 airlines that account for around 82 per cent of global air traffic.The Total Investment & Insurance
Solutions
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