"India's domestic market increased by a solid 6% in July over the previous year. This could be an early sign of the success of the new government's business-friendly stance," IATA said Wednesday while announcing the global passenger traffic results for July.
The global body, however, had a muted response to NDA's first budget. "However, the government's July budget announcement showed little spending stimulus which could keep India's growth trend below the pace of other emerging markets," IATA said.
India's 6% growth made it the third fastest growing market in July when average global was 4.9%. The strongest growth was recorded in Russia at 9.9%, followed by China at 8.8%"July was another strong month of growth for air travel. People are connecting by air in ever greater numbers. That's true across all regions. Despite the various economic challenges, the outlook for passenger travel remains broadly positive. The overall sluggishness at the beginning of the year appears to be behind us with growth in China and other emerging economies offsetting recent deterioration in the Eurozone," said IATA CEO Tony Tyler.
July international passenger demand rose by 5.5% compared to the same month in 2013. This was outstripped by a capacity expansion of 6.2% which resulted in a slight weakening of the load factor to 81.9% (down 0.5 percentage points from the year-ago period, but still at a very high level).
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