First time in over 5 years, India's domestic air traffic growth falls in April on Jet Airways shutdown: IATA

India's domestic air traffic registered first negative growth rate in more than five years in April, mainly due to the demise of Jet Airways, global airlines' grouping IATA said on Wednesday

Press Trust of India May 29, 2019 15:49:32 IST
First time in over 5 years, India's domestic air traffic growth falls in April on Jet Airways shutdown: IATA
  • The country was one of the fastest growing domestic aviation markets in the world for the past many months

  • The International Air Transport Association (IATA), a grouping of around 290 airlines, said following a sustained period of strong double-digit RPK growth, the India domestic market recorded its first negative growth rate in April since January 2014

  • Air India, Vistara, SpiceJet and now defunct Jet Airways are among the Indian carriers that are members of the IATA

New Delhi: India's domestic air traffic registered first negative growth rate in more than five years in April, mainly due to the demise of Jet Airways, global airlines' grouping IATA said on Wednesday.

The country was one of the fastest growing domestic aviation markets in the world for the past many months.

The International Air Transport Association (IATA), a grouping of around 290 airlines, said following a sustained period of strong double-digit RPK growth, the India domestic market recorded its first negative growth rate in April since January 2014.

Revenue Passenger Kilometre (RPK) is a measure of passenger volumes.

"After a sustained period of very strong growth, RPKs in the domestic India market are 0.5 percent lower than their year-ago level. This is the first negative growth rate in more than five years and is largely due to the demise of Jet Airways," the grouping said in its global passenger traffic results for April.

First time in over 5 years Indias domestic air traffic growth falls in April on Jet Airways shutdown IATA

Representative image. Reuters.

Air India, Vistara, SpiceJet and now defunct Jet Airways are among the Indian carriers that are members of the IATA.

Jet Airways, which was flying for more than 25 years, temporarily suspended operations in April after it ran out of cash. Flight cancellations and subsequent grounding of the airline adversely impacted seat capacity in the domestic market which also resulted in fares going up.

According to the report, RPKs in India are currently 0.5 percent lower than their year-ago level, down from a 15 percent year-on-year pace as recently as December.

"Over the past five years, annual growth has averaged a pace close to 20 percent. The main explanation for this dramatic slowing is the exit of Jet Airways from the market.

"This sizeable supply side interruption has not yet been offset by other carriers, resulting in ASK growth also slowing sharply, to just 0.5 percent y-o-y currently (compared to an average pace of around 15 percent in the past two years). More broadly, rising airfares in recent months are also likely to have weighed upon passenger demand," it said.

Available Seat Kilometre (ASK) is an indicator of capacity.

Globally, the IATA said RPK rose 4.3 percent in April compared to the same period a year ago.

"We experienced solid but not exceptional rising demand for air connectivity in April. This partly is owing to the timing of Easter, but also reflects the slowing global economy.

"Driven by tariffs and trade disputes, global trade is falling, and as a result, we are not seeing traffic growing at the same levels as a year ago," IATA Director General and CEO Alexandre de Juniac said.

However, he noted that airlines are doing a very good job of managing aircraft utilisation, leading to record load factors.

Updated Date:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

India-UK air travel to resume from 8 January; 30 flights to operate per week, says govt
India

India-UK air travel to resume from 8 January; 30 flights to operate per week, says govt

Carriers from India and the UK will each be operating 15 flights per week till 23 January to and from Delhi, Mumbai, Bengaluru and Hyderabad only

Banished and dissociated: These businesses and institutions are cutting ties with Donald Trump
World

Banished and dissociated: These businesses and institutions are cutting ties with Donald Trump

Big businesses donate to both political parties and say their support is tied to narrow issues of specific interest to their industries. Now, a flurry of companies are reviewing their giving practices.

Saudi Arabia to open air space, land and maritime borders for Qatar with a view to ending Gulf crisis
World

Saudi Arabia to open air space, land and maritime borders for Qatar with a view to ending Gulf crisis

Qatar's land border has been closed since 2017, when Saudi Arabia, Egypt, the UAE and Bahrain launched a blockade against the Gulf State owing to its support to Islamist extremist groups