Domestic air traffic to grow to 130 million in FY18, says CAPA


Domestic air traffic is expected to grow 25 per cent and cross 130 million in financial year 2017-18 but airlines will see bigger risks to profitability because of rising costs and yield pressures, aviation consultancy CAPA said in its India outlook on Wednesday.

Domestic traffic has been rising at 20 per cent plus for the past three years and, in 2016, carriers flew close to 100 million passengers.

The growth trend will continue and airlines will add over 60-65 planes. Most of these additions will be by low cost airlines.

CAPA expects industry-wide losses in the country to grow from $250-300 million to $ 380-450 million in FY17 and FY18, respectively. Losses are likely to increase in Air India, AirAsia India and Vistara. Further, airlines will face yield pressures and find it difficult to cut costs. Other domestic airlines will continue to make profit. Read More…

Credit By: Business Standard

You may also read!

Government plans big events to mark the first anniversary of Surgical Strikes

Government plans big events to mark the first anniversary of Surgical Strikes.

Read More...

North Korea May Consider Hydrogen Bomb Test In Pacific, Kim Jong-un Calls Donald Trump ‘deranged’

North Korea said on Friday it might test a hydrogen bomb over the Pacific Ocean after President Donald Trump

Read More...

Multi-Agency Exercise ‘Pralay Sahayam’ Held

A multi-agency exercise was conducted on the banks of Hussain Sagar Lake as the final event of ‘Pralay Sahayam’

Read More...

One commentOn Domestic air traffic to grow to 130 million in FY18, says CAPA

Leave a reply:

Your email address will not be published.

Mobile Sliding Menu