India's domestic aviation sector worst performer globally

New Delhi: India's civil aviation sector was the worst performer globally in July as the domestic passenger traffic contracted 1.1 per cent year-on-year, the International Air Transport Association (IATA) said on Thursday.

"After expanding at 20 per cent plus rates through 2010 and early 2011, the Indian market stopped growing at the end of 2011," IATA said, adding that the contraction was due to a combination of many factors, including a slowdown in the economy.

"The uncertain economic outlook is having a negative impact on demand for air transport," Tony Tyler, director general and chief executive of IATA, said in a statement.

The domestic passenger traffic contracted 1.1 per cent year-on-year, the International Air Transport Association said.

The demand-supply gap too widened in the month under review as 2.1 per cent more capacity was added which reduced the average load factors of the domestic carriers to 69.6 per cent from 71.8 per cent in the corresponding period of 2011.

According to the country's aviation regulator, the domestic air passenger traffic fell 9.93 per cent for the third straight month in July, which stood at 45.37 lakh from 50.37 lakh travellers in the corresponding month of 2011.

The passenger traffic on the month-on-month basis fell 11.17 per cent in July at 45.37 lakh from 51.08 lakh travellers in June 2012.

However, international passenger demand in July increased by 3.5 per cent compared to the year-ago period. International load factors remained healthy at 83.3 per cent.

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