India’s airlines traffic jump by 17.9% in March

India’s airlines traffic jump by 17.9% in March

India’s airlines saw traffic jump 17.9% in March, likely reflecting market stimulation by local carriers and a strengthening economy. The International Air Transport Association (IATA) announced global passenger traffic results for March 2015 showing demand (revenue passenger kilometers or RPKs) rose 7.4 per cent compared to March 2014. This was an improvement on February, when year-over-year growth was 6.4 per cent. The acceleration in the year-on-year comparison reflects the residual impact of the February Lunar New Year celebrations, which tend to boost leisure travel in the weeks before and after the holiday. In 2014, the holiday occurred at the end of January. However, underlying traffic trends confirm demand remains robust. March capacity rose 5.6 per cent and load factor climbed 1.3 percentage points to 80 per cent. Domestic markets experienced stronger growth than international markets, but both performed well. “March traffic continues the trend of healthy demand for travel. We may, however, see a softening of demand in the second quarter. There are signs that regional trade activity in Asia-Pacific may be slowing and Euro zone economic weakness continues to disappoint,” said Tony Tyler, Director General and CEO, IATA. International Air Transport Association represents some 260 airlines comprising 84 per cent of global air traffic.