India: Aviation flying high with domestic air traffic growth over 20%
The recent data presented by DGCA shows that February is the fifth consecutive month where domestic passenger traffic grew over 20% on a year-on-year basis. In February, Indian airlines flew 7.4m passengers as against 6m passengers in the corresponding month of the last year, indicating a jump of 24.7%. The firm trend in traffic and lower fuel prices are expected to support valuation of aviation stocks in the short and medium term. There are a few factors which have contributed to the growth in passenger traffic. First, airlines have been passing on the benefit of lower crude oil prices to travellers. Second, as rail fares have increased in the recent months, the difference in fares of rail and airlines has narrowed for key routes such as Mumbai-Delhi, Mumbai-Bengaluru, and Mumbai-Chennai. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2016-04-01/general/india-aviation-flying-high-with-domestic-air-traffic-growth-over-20
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India: Aviation flying high with domestic air traffic growth over 20%
The recent data presented by DGCA shows that February is the fifth consecutive month where domestic passenger traffic grew over 20% on a year-on-year basis. In February, Indian airlines flew 7.4m passengers as against 6m passengers in the corresponding month of the last year, indicating a jump of 24.7%. The firm trend in traffic and lower fuel prices are expected to support valuation of aviation stocks in the short and medium term. There are a few factors which have contributed to the growth in passenger traffic. First, airlines have been passing on the benefit of lower crude oil prices to travellers. Second, as rail fares have increased in the recent months, the difference in fares of rail and airlines has narrowed for key routes such as Mumbai-Delhi, Mumbai-Bengaluru, and Mumbai-Chennai. <br/>
