Despite a raft of policy facilitations, domestic airlines are flying into two major headwinds – crippling infrastructure constraints at major airports, and an uptick in fuel prices – which could mean growth in domestic air passenger traffic may have peaked out for the medium term.
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Domestic air passenger traffic up 25percent in January
Domestic air passenger traffic went up by 25.13 per cent during last month to 95.79 lakh, according to official data.
“Passengers carried by domestic airlines during January 2017 were 95.79 lakh as against 76.55 lakh during the corresponding period of the previous year, thereby registering a growth of 25.13 per cent," said a statement from the Directorate General of Civil Aviation (DGCA).
India’s domestic air traffic up 22.3percent in Nov
India's domestic air passenger traffic grew by 22.3 per cent in November 2016, topping the growth chart worldwide for the 20th straight month while there was little sign of demonetisation having any immediate negative impact on passenger numbers, according to IATA.