Higher fares lowered domestic air passenger growth

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New Delhi, May 9: Higher airfares coupled with increased fuel surcharges have pulled down the domestic air passenger growth significantly to 11.2 per in the first quarter of the current year, against 29 per cent achieved in calendar year 2007.

In March alone, the domestic fares and fuel surcharges surged by 10 per cent putting higher pressure on the growth rate, a recent report by the Centre for Asia Pacific Aviation said.

The report, covering emerging Markets of Asia like China, Indonesia and India, sounded a warning for the aviation industry in the continent saying the current year would achieve a lower growth than the last few years.

“Whether it is a spill-over from the US or the impact of rising costs of travel, or a combination of the two, it is clear Asia’s big emerging air travel Markets will have a soft year,” the report stated.

However, the report is in contrast to a recent American Express study, which pointed out the average domestic airfares in the country were down by 9 per cent in the first quarter of the on-going calender year against the corresponding quarter of 2007.