Wednesday, March 08, 2017

Indian Aviation Industry to witness max passenger traffic growth amidst profitability pressure, says ICRA

New Delhi: Credit rating agency ICRA has said that the Indian Aviation Industry is likely to report 22 to 23 percent passenger traffic growth in FY2017 supported by ongoing low airfare regime says ICRA in its report.
The airlines are maintaining healthy PLFs backed by low airfares. However, since the ATF prices have been on an uptrend during the year, the impact on profitability of the airlines during Q4 FY2017 is inevitable as average ATF prices during the quarter are 37.9 percent higher YoY, while the yields continue to remain under pressure.
As per ICRA estimates, the fuel cost per ASKM (CASK) of the domestic aviation industry increased to Rs. 1.16 in January 2017 from a low of Rs. 0.82 in February 2016, and the same is expected to increase further in February and March 2017.
“The Indian Aviation industry has reported YoY passenger traffic growth of 23.2 percent during 10m FY2017 period and the industry is heading towards completing one of the best years in terms of passenger traffic growth. The domestic passenger growth for last five years stood at 12.9 percent, 5.3 percent, 4.6 percent, 15.5 percent and 22.1 percent and the industry is likely to surpass the last year growth rate, notably on a higher base. The traffic growth performance has also been one of the best amongst other key aviation markets in the world,” said AVP and Associate Head Corporate Sector ratings ICRA, Anand Kulkarni.
08/03/17 ANI/India.com

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