...Macroeconomic growth should help bolster demand and top-line growth for the region's airlines, and data so far in 2015 is already showing strong demand growth. There has been strong domestic growth in India especially, according to data from the International Air Transport Association. Revenue passenger-kilometre growth topped 19% yoy in India over the first 10 months of 2015, above 12.4% in China, 8.5% in Russia and 2.3% in Brazil. Air travel demand in south-east Asia was supported by a robust increase in tourist arrivals in countries including Thailand and Philippines, which had double-digit growth in 9M15. Passenger load factors (PLF) in India and south-east Asia have risen steadily, with the average PLF across seven major airlines based in the region hitting multi-year highs above 80% in 3Q15. Improving GDP growth should continue to support PLFs. Fitch Ratings expects real GDP growth to accelerate in India and most parts of south-east Asia next year. Malaysia and Singapore are exceptions,...
