India's domestic passenger demand up 18 percent, fastest in the world: IATA

Leading international aviation body IATA on Thursday reported that India's domestic passenger demand grew by 18.3 percent in August, 2015.

Though August's demand was weaker in comparison to the 28 percent spike in July, nevertheless, it was the fastest amongst the major aviation markets of the world.

According to the International Air Transport Association (IATA), India's passenger traffic demand grew the fastest amongst the seven major aviation markets of the world -- Australia, Brazil, China, Japan, Russian Federation and the US.

India's traffic demand growth was followed by China at 13.6 percent and the Russian Federation at 10.9 percent.

The country's domestic traffic had spiked by 28 percent in July, 16.3 percent in June, 18.2 percent in May, 20.7 percent in April and 17.9 percent in March 2015.

India's domestic capacity in the month under review rose by 8.4 percent when compared to August 2014.

As per IATA, India's domestic demand soared owing to significant increases in service frequencies and improvements in economic growth.

"India's domestic demand surged 18.3 percent in August compared to a year ago, largely reflecting increases in service frequencies and economic strength," IATA said in its global passenger traffic results for August.

India's growth is also significant contributor for the expansion of Asia-Pacific carriers. The domestic markets in India, China and Japan accounts for 44 percent of the region's operations.

On global-basis total passenger traffic demand rose 7.1 percent in August 2015, with the strongest growth occurring in India, China and the Russian Federation.

The global passenger traffic results, showed a 5.9 percent increase in capacity during the month under review, with a load factor of 84.7 percent.

"August results continue the trend of strong demand for air travel, despite some softening in global economic growth, particularly in emerging markets," said Tony Tyler, director general and chief executive of IATA.

Earlier, data furnished by the civil aviation ministry showed that domestic air passenger traffic increased by 18.66 percent in August, which stood at 67.60 lakh passengers -- up from 56.97 lakh in the corresponding month last year.

The data also showed that low-cost carrier IndiGo achieved the highest market share at 35.8 percent followed by Jet Airways (19.8), Air India (16.2), SpiceJet (12.3), GoAir (8.4) and JetLite (3 percent).

AirAsia India had a market share of 1.9 percent, followed by Vistara at 1.4 percent, Air Costa's at 1.00 percent and Air Pegasus at 0.2 percent.