Domestic air traffic in India last year shrank 2.1 percent below the 2011 levels due to weak economic growth and exorbitant operational costs, including high taxes, global airlines' body IATA has said in a statement.

However, the overall domestic air travel markets expanded four per cent in 2012 compared to 2011 with China as well as Brazil registering "strong growth" and "smaller expansion" of 0.8 percent in the US domestic market which constitutes almost half of global domestic travel.

"Indian domestic travel shrank by 2.1 percent on 2011 levels. Weak economic growth was exacerbated by increasing operational costs, insufficient infrastructure, high taxes and onerous regulation," International Air Transport Association said announcing the full-year traffic results for 2012.

The growth in capacity (number of aircraft seats offered) in Indian domestic sector fell drastically to 0.3 percent from 16.2 percent in 2011, while average load factor (filling up of seats on offer) was 72.9 percent, it said. However, the global domestic air travel markets expanded four per cent. China registered 9.5 percent growth and Brazil 8.6 percent, in contrast to 2.1 percent contraction in India, the latest study showed.

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