Airline passenger numbers declining due to rising airfares

Last month saw a 12.4 per cent fall in domestic flyers with the figure at 40.2 lacs; To spur demandJet Airways and Air India, have dropped fares by 40 per cent if passengers book in advance

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High airfare and prohibitive airport user charges at places like Delhi amid a slowing economy have finally taken their toll on domestic air travel. After negative monthon-month growth for a while now, this year is staring at the possibility of witnessing lesser people take to skies than 2011. The January-September, 2012 period saw 438.4 lakh people flying within the country — 0.9 per cent less than last year's figure of 442.2 lakh in the same period.

Domestic airlines registered a decline of over 12 per cent in the number of passengers during September this year, as compared to the same period last year. Latest data released by the Directorate General of Civil Aviation show that domestic airlines flew 40.18 lakh passengers in September, as compared with 45.87 lakh passengers flown previously.

Analysts say the decline in passenger demand was largely due to the fare hike by airlines . To spur demand, the full service airlines, including Jet Airways and Air India, have dropped fares by 40 per cent if passengers book in advance.

The data indicate that for the fourth successive month, demand was lower than the available capacity. In September, airlines dropped capacity by 1.3 per cent, while passenger demand dropped by 7.7 per cent on a year-on-year basis. Almost the same trend has continued since June. 

The single digit negative growth recorded for past many months has also accelerated. Last month saw a 12.4 per cent fall in domestic flyers with the figure at 40.2 lakh as against 45.9 lakh in the same month last year. Airline officials say they expect the free fall in traffic to be checked with the onset of the festive season.

 

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