The number of passengers flown by domestic airlines during the calendar year touched an all-time high of over 6 crore despite a fall in demand among domestic air travellers in December.

The latest data collated by the Directorate General of Civil Aviation show that in December, domestic air traffic growth was in single digits. Incidentally, passenger demand for domestic travel has been moving southwards since July last year.

The data show a growth in demand for all the domestic scheduled airlines in the range of 6-8 per cent, while capacity addition was in the range of 10-12 per cent.

With capacity outstripping demand, airlines were forced to sell tickets at lower prices that, in turn, affected their yields as per a report in HBL by Shishir Sinha & Aswini Phadnis.

Various analysts estimate that airlines are incurring an average loss of about Rs 900 a seat. The result can be seen in the financial performance of all the three listed airlines, Jet, Kingfisher and SpiceJet.

(You need to login first to read complete news).
New User? Register for FREE!
» Back to Travel News