New Delhi: Higher airfares coupled with increased fuel surcharges have pulled down the domestic air passenger growth significantly to 11.2% in the first quarter of the current year.
In March alone, the domestic fares and fuel surcharges surged by 10% putting higher pressure on the growth rate, a recent report by the Centre for Asia Pacific Aviation said.
The report, covering emerging markets of Asia like China, Indonesia and India, sounded a warning for the aviation industry in the continent saying the current year would achieve a lower growth than the last few years.
“Whether it is a spill-over from the US or the impact of rising costs of travel, or a combination of the two, it is clear Asia’s big emerging air travel markets will have a soft year,” the report stated.
However, the report is in contrast to a recent American Express study, which pointed out the average domestic airfares in the country were down by 9% in the first quarter of the on-going calender year against the corresponding quarter of 2007.
The American Express study also mentions the average fares in the Asia-Pacific region marginally went up by 1% in the quarter.