Indian carriers are likely to report combined lossess to the tune of $250-300 million according to a report by aviation consultancy Centre for Asia Pacific Aviation (CAPA).
“IndiGo, Jet Airways, SpiceJet, GoAir and Air India Express are all expected to remain profitable for the full year (FY17), but at levels lower than in FY2016, while losses are projected to increase at Air India, AirAsia India and Vistara.
At a total industry level, losses could reach USD 250-300 million,” the CAPA India Aviation outlook FY2018 report said.
IT has also projected higher losses for the next fiscal at USD 380-450 million. Indian airlines reported a combined profit of USD 122 million in the year ended March 2016, “but this era of profitability is likely to be short-lived. Traffic growth is being stimulated above its underlying demand as a result of excess capacity and competitive fares,” the report stated.
Cautioning that the profitless growth is expected to increase viability risks, starting from the next fiscal, CAPA noted that if the Indian carriers continue to expand without sufficient capitalisation, they could face significant challenges when the next external oil price shock hits.
09/02/17 Defence Aviation Post
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“IndiGo, Jet Airways, SpiceJet, GoAir and Air India Express are all expected to remain profitable for the full year (FY17), but at levels lower than in FY2016, while losses are projected to increase at Air India, AirAsia India and Vistara.
At a total industry level, losses could reach USD 250-300 million,” the CAPA India Aviation outlook FY2018 report said.
IT has also projected higher losses for the next fiscal at USD 380-450 million. Indian airlines reported a combined profit of USD 122 million in the year ended March 2016, “but this era of profitability is likely to be short-lived. Traffic growth is being stimulated above its underlying demand as a result of excess capacity and competitive fares,” the report stated.
Cautioning that the profitless growth is expected to increase viability risks, starting from the next fiscal, CAPA noted that if the Indian carriers continue to expand without sufficient capitalisation, they could face significant challenges when the next external oil price shock hits.
09/02/17 Defence Aviation Post
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