Domestic aviation is on a strong volume growth trajectory—August passenger numbers at 8.3 million represented 24% growth y-o-y. This is expected to continue given the increasing affordability and widening air network. However, industry profitability has been volative, with airlines resorting to predatory pricing to grab market share. This too is expected to continue since capacity should increase at 20% CAGR over FY16-18.
