Occupancy to steer the course for aviation cos

Mumbai: Passenger occupancy figures, which saw an improvement in the later half of the April-June quarter, will be a key determinant of the aviation sector’s performance this quarter, say analysts.
Jet Airways, with 26% market domestic market share, is expected to post a loss of Rs 17 crore, says an IDFC Securities report. The figure also includes a one-time hit of Rs 41.4 crore due volcanic ash in Iceland that led the airline to discontinue its flights in April to the US and the UK destinations for a couple of days. Jet has three daily flights to the UK and the US, respectively.
Arvind Mahajan, executive director, KPMG Advisory Services, says: “The turnaround in the sector has happened against the backdrop of improved market conditions. Jet has shown operational efficiencies in terms of lowering its costs. Its international operations are doing well with excellent load factors.”
Sudheer Raghavan, chief commercial officer at Jet had recently told Fe that of 85 daily international flights with 23 destinations in the international skies, seat factors in the US sector are above 80%, in the UK region it's close to 90%; in Asean and Gulf sectors it’s 78% and 73% receptively at Jet.
19/07/10 Shaheen Mansuri/Financial Express

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Categories: Indian Aviation- In General Jul 2010