Uncertainty prevails over recovery by domestic carriers

Mumbai: Despite expectations of financial improvements for some domestic carriers in the three months ended December, civil aviation executives and experts are wondering if the industry has flown past cloudy weather.
With all its festivals and holidays, the December quarter forms the peak travelling season—and that is expected to reflect in the account books of a number of airlines affected by the aviation downturn of the past year and a half. But worries over volatile jet fuel costs and price competition have dampened some of the exuberance.
On Thursday, Kingfisher Airlines Ltd kicked off the earnings season with an operating profit of Rs11 crore for its domestic operations, although it posted a net loss of Rs419.96 crore.
SpiceJet Ltd posted a record profit of Rs108.9 crore for the same quarter. Jet Airways (India) Ltd, which will announce its results on Monday, is expected to post a profit of around Rs10 crore.
While analysts who track the industry are upbeat, airline executives remain cautiously optimistic. Some are downright sceptical about whether the numbers are an indication of better times to come. They warn that even minor changes in the business environment could scuttle any hopes of recovery.
25/01/10 P. R. Sanjai/Live Mint

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Categories: Indian Aviation- In General Jan 2010