All domestic passenger markets showed improvement on a year ago except India. Air travel in China continues to expand strongly, with November demand 7.7% higher than a year ago. In India, weakening economic conditions and reduced available capacity continue to dampen domestic air travel, with the market 6.5% down in November compared to a year ago.
The seasonally adjusted levels, however, show an expansion of 3.2% in November compared to October. This is the second month of increase, after a period of continued decline since late 2011. It is not yet clear if this is a positive turning point, since the fundamentals do not support the change, so the next months will be telling as to the direction the market is moving. Domestic air travel in India stands out as the only region to have declined compared to a year ago, by 6.5% in November. India’s slowing economy and declining consumer confidence have suppressed domestic travel, as have declines in seat capacity. Over the month, however, the seasonally adjusted analysis indicates an expansion of 3.2% in November compared to October.
This is the second month of increase, after a period of continued decline since late 2011. It is not clear if this is a turning point in the negative trend, since the fundamentals do not support the change, so coming months of data will be telling as to the direction the market is moving.
Source: IATA.org
