Indian domestic air traffic during the month of July fell 1.1 per cent compared to a year ago, the worst performance for any market, reflecting the weakening economy among other factors, the International Air Transport Association (IATA) has said.
According to IATA, after expanding at 20 per cent plus rates through 2010 and early 2011, the Indian market stopped growing at the end of 2011. “July capacity rose 2.1 per cent, dropping the load factor to 69.6 per cent from 71.8 per cent last year,” the association said.
Load factor is the ratio of the lift of an aircraft to its weight. IATA said the global traffic results for July showed slower growth in both air travel and freight, but with considerable variation by region and market.
It said the domestic markets also experienced slow growth, continuing the trend that began early this year. “In total, traffic rose 3.1 per cent year-on-year, down from 4.2 per cent in June. However, the slowdown was not universal, with China and Brazil recording strong growth that was offset by weakness in India and Japan.
This slowdown in travel growth is being driven largely by the recent fall in business confidence in many economies.
“The uncertain economic outlook is having a negative impact on demand for air transport,” said Tony Tyler, IATA’s director general and CEO. The cargo business is 3.2 per cent smaller than it was a year ago.
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