Domestic airfares see downward trend in Q2

Domestic airfares see downward trend in Q2
Comment E-mail Print Share
First Published: Mon, Aug 20 2007. 04 29 PM IST
Updated: Mon, Aug 20 2007. 04 29 PM IST
PTI
Chennai: India’s domestic airfares manifested a downward trend in the second quarter of 2007 even as intra Asia-Pacific routes saw a growth similar to that in the average airfares across Asia-Pacific region, an agency monitoring the industry said.
According to the market trends published by American Express Business Travel Monitor, in India, published airfares were down 1% compared to the yearly estimates.
“While the domestic fares fell 2% for the quarter, intra Asia-Pacific routes saw a steady increase of 4%”, Kurt Knackstedt, head, American Express Business Travel Advisory Services said in a statement on 20 August.
However, in China full and discount economy fares saw the strongest rise of 18% for the quarter, largely driven by the growth in the US routes.
The increased focus by airline yield managers to maximise revenue on popular airfares also contributed to the growth.
The 2% growth in average airfares in Asia-Pacific region compared to the flat results in the first quarter, was driven by increased demand from leisure and business travellers.It also reflected the positive economic environment in the region, the statement said.
“The Asia-Pacific region tends to demonstrate higher. more consistent profitability for its air carriers compared to the European and North American markets”, Knackstedt said adding Asia-Pacific carriers demonstrated better cost control.
Among different destinations, intra Pacific routes grew fastest during the quarter at 3%, even as the US routes continued their long-term growth at 6%.
Comment E-mail Print Share
First Published: Mon, Aug 20 2007. 04 29 PM IST