Mumbai: irlines in India are likely to face headwinds in profitability in 2016-17 in the face of rising risks from increasing capacity, pricing pressure and possible cost increases, according to a sector outlook statement released on Thursday by consultancy firm Capa India.
Though the aviation firms will be largely profitable, the pressure on yields is expected to be over 5% for 2016-17 and is likely to impact profitability, the report said.
While flagging of risks, the report said that airlines have been benefitting on the back of declining jet fuel prices and strong passenger growth.
For the year ending 31 March, 2016, the aviation firms are expected to post a combined loss of $350 million, down from $500-550 million forecast in October, Capa had said in its January report. The estimate assumes that oil prices will remain low and that the currency will remain stable.
05/02/16 PR Sanjai/AviationPros
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Though the aviation firms will be largely profitable, the pressure on yields is expected to be over 5% for 2016-17 and is likely to impact profitability, the report said.
While flagging of risks, the report said that airlines have been benefitting on the back of declining jet fuel prices and strong passenger growth.
For the year ending 31 March, 2016, the aviation firms are expected to post a combined loss of $350 million, down from $500-550 million forecast in October, Capa had said in its January report. The estimate assumes that oil prices will remain low and that the currency will remain stable.
05/02/16 PR Sanjai/AviationPros
