Slash in airfares boosts domestic passenger market

Domestic passenger market grew by over seven per cent last month on a year-on-year basis primarily due to a slash in airfares, the IATA said today.
While the average load factor (or seats filled in each aircraft) touched 81.5 per cent mark, Indian domestic market grew 7.7 per cent in June compared with the same month last year, according to global traffic data released by the International Air Transport Association (IATA).
However in its analysis of the data, the global airlines' body said though "reduction in domestic fares may be leading to increased demand, but it is difficult to discern the true strength of the Indian market due to the volatility of month- to-month traffic."

The overall global year-on-year growth in passenger demand in June was six per cent, it said, adding that the "robust" growth, measured in revenue passengerkilometres (RPK), was ahead of the 4.8 per cent demand growth reported over the first six months of 2013 compared to last year.
"Between May and June, the strong growth trend was reflected in all regions but it should be noted that Asia-Pacific airlines were responsible for half of the increase," the IATA said.
"The half-year report for passenger markets is broadly positive. There is plenty of evidence to support some cautious optimism. Airlines are expecting continued growth in demand, but there is little immediate hope for an improvement in yields," IATA Director General Tony Tyler said.