New Delhi, Aug 6 (IANS): The international aviation body IATA on Thursday reported that India's domestic passenger traffic increased by 16.3 percent in June 2015.

According to the International Air Transport Association (IATA), the country's domestic traffic spiked by 18.2 percent in May, 20.7 percent in April 2015 and 17.9 percent in March 2015.

India's domestic capacity in the month under review rose by 6.6 percent when compared to June 2014.

"We are hoping for the imminent announcement of its (India's) new aviation policy. Improved air connectivity would make a major contribution to the government’s efforts to make it easier to do business in India," Tony Tyler, director general and chief executive of IATA was quoted in a statement.

"For that, we need a policy framework that reduces onerous taxes and regulation and that continues to improve infrastructure and cost efficiency.”

India's growth is also significant contributor for the expansion of Asia-Pacific carriers. The domestic markets in India, China and Japan accounts for 44 percent of the region’s operations.

On global-basis, domestic travel demand rose 6.5 percent in June 2015, with the strongest growth occurring in India, China and the Russian Federation.

The global passenger traffic results for June showed a 5.7 percent increase in demand during the month under review.

Earlier, data furnished by the civil aviation ministry showed that domestic air passenger traffic increased by 16.03 percent in June, which stood at 66.01 lakh passengers -- up from 56.89 lakh in the corresponding month last year.

The data also showed that low-cost carrier IndiGo achieved the highest market share at 38.4 percent followed by Jet Airways (18.7), Air India (15.8), SpiceJet (11.6), GoAir (8.7) and JetLite (3.2).

AirAsia India and Vistara reported a market share of 1.4 percent and 1.3 percent respectively, followed by Air Costa's (1.00) and Air Pegasus (0.1).