Story of exceptional growth in Indian domestic market takes diversion

The story of exceptional growth in the Indian domestic market took a diversion for a third consecutive month in Jul-2012, with a 9.9% year-on-year decline to 4.53 million passengers. Year-on-year reductions in passenger numbers commenced in May-2012, with a 0.9% year-on-year reduction in passenger numbers to 5.4 million, while Jun-2012 witnessed a larger 3.8% year-on-year decline to 5.10 million passengers.

India was the only major domestic market worldwide that failed to show an expansion in demand (RPKs) in Jun-2012 compared with the previous year. This was preceded by almost three years - or 35 consecutive months - of uninterrupted growth, most of it at double-digit rates (all but six of these months witnessed double-digit growth). Up until Feb-2012, India's growth rate was among the highest in the world with double-digit increases in passenger carriage, supported by strong domestic demand and economic growth.