After struggling for 10 years, airlines in India posted a combined profit of USD 122 million in FY2016 at an industry level, the CAPA (Centre for Asia Pacific Aviation) estimates. This growth has been attributed to largely lower fuel prices, modest capacity and strengthening economic fundamentals. Although, still continuing to make losses, Air India recorded its first-ever operating profit in a decade in FY2016. However, the Indian aviation industry is expected to return to the red with losses of USD 250-300 million in FY2017, and USD 380-450 million in FY2018. These are some of the key findings of the CAPA India Aviation Outlook FY2018, which will be released later this month.
Elaborating on these figures, Kapil Kaul, CEO, South Asia CAPA & Chairman, CAPA India Aviation Summit 2017, said, “When we drafted the outlook in December 2016, our estimate was the industry has made a profit of USD 122 million in FY2016, but that time the assumption on Air India’s losses was different, which is now much higher than we anticipated. Although, it is a good sign that the industry returned to profitability in FY2016, on an industry and consolidated levels, FY2017 and FY2018 are staring at huge losses. Last year, IndiGo, GoAir, SpiceJet, Air India Express and Jet Airways posted record-making profits. Therefore, the market was dominated by LCCs.”
15/02/17 Travel Biz Monitor
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Elaborating on these figures, Kapil Kaul, CEO, South Asia CAPA & Chairman, CAPA India Aviation Summit 2017, said, “When we drafted the outlook in December 2016, our estimate was the industry has made a profit of USD 122 million in FY2016, but that time the assumption on Air India’s losses was different, which is now much higher than we anticipated. Although, it is a good sign that the industry returned to profitability in FY2016, on an industry and consolidated levels, FY2017 and FY2018 are staring at huge losses. Last year, IndiGo, GoAir, SpiceJet, Air India Express and Jet Airways posted record-making profits. Therefore, the market was dominated by LCCs.”
15/02/17 Travel Biz Monitor
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