Airline load factor for March likely to decline

Airline load factor is likely to be announced anytime in the next two to three days and it is expected to drop substantially. March load factors for low cost carriers like SpiceJet, Indigo and GoAir is expected to drop 10% and load factors for full service carriers like Jet Airways, Kingfisher Airlines and Air India is expected to drop by a minimum of 5-7%. This will be a good realty check when the markets opens today because all the stocks like Jet Airways, Kingfisher Airlines and Spice Jet closed very high in trade yesterday.
Airline sources and analysts say that the month of March will see a substantial drop in road factors for airlines. March load factors for low cost carriers like Spice Jet, Indigo and Go Air is expected to drop 10% and load factors for full service carriers like Jet Airways, Kingfisher Airlines and Air India is expected to drop by a minimum of 5-7%. This decline in the load factor for the month of March comes on the back of weak demand in the month of March and due to the rub off effect for fare hikes that happened in the first week of February.
Sources at Spice Jet said that they are expecting a load factor of 68% for the month of March as against 78.5% in the month of February.
Analysts expect Jet Airways to see a load factor of 64% in the month of March as against 68.7% in the month of February. This will be a good realty check when the markets opens today because all the stocks like Jet Airways, Kingfisher Airlines and Spice Jet closed very high in trade yesterday.
11/04/09 CNBC-TV18/Moneycontrol.com

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Categories: Indian Aviation- In General Apr 2009