Ratings agency Fitch on Friday said that a capacity constraint led increase in airfares will dent passenger traffic growth.
According to Fitch, the Indian aviation market has seen a sharp increase in airfares in the last few months due to tight supply, which has been worsened by the suspension of the 737 MAX aircraft.
“Fitch expects the growth in revenue passenger kilometres (RPK), which decelerated to 12.4 per cent in January (2018: 19.9 per cent), to weaken further until supply increases,” the rating agency said in a note.
The air passenger volume is measured in RPK. Read more