Some 67.5 million travelers boarded domestic or international flights from January to October this year, up 13 percent from the same period a year ago. (Antara Photo/Muhamad Iqbal)

INACA Sees Modest Air Travel Growth in 2016

BY :TRI MURTI

DECEMBER 16, 2015

Jakarta. The Indonesia National Air Carrier Association, or INACA, predicts traveler growth of just 8 percent next year, citing airlines' doubts that economic growth next year will be strong enough to significantly boost travel.

Some 67.5 million travelers boarded domestic or international flights from January to October this year, up 13 percent from the same period a year ago, according to the Central Statistics Agency (BPS).

INACA said last month that traveler growth could drop to 6 percent from its initial target of 8 percent this year due to a sluggish economy and recent disruptions from haze and volcanic ash at airports across the country.

"Next year it will remain in the single digits, about 8 to 9 percent," Arif Wibowo, the INACA chairman, said on Tuesday. "Therefore airlines have to be more careful in taking care of their bottom line."

National economic growth is expected to rebound to 5.3 percent next year from a projected 4.8 percent this year, on the back of anticipated government spending on public works projects.

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