Domestic air traffic to grow to 130 million in FY18, says CAPA

However, industry-wide losses to widen because of cost pressure and fall in yield

Domestic air traffic is expected to grow 25 per cent and cross 130 million in financial year 2017-18 but airlines will see bigger risks to profitability because of rising costs and yield pressures, aviation consultancy CAPA said in its India outlook on Wednesday.

Domestic traffic has been rising at 20 per cent plus for the past three years and, in 2016, carriers flew close to 100 million passengers.

The growth trend will continue and airlines will add over 60-65 planes. Most of these additions will be by low cost airlines.

CAPA expects industry-wide losses in the country to grow from