New Delhi: Loss-making Indian airlines should see better times in 2012-13 due to an improvement in pricing power after the gradual but substantial cancellation of flights by crisis-hit Kingfisher Airlines. However, they may not make profit in the fourth quarter of 2011-12, as high costs, especially of aviation turbine fuel (ATF), are likely to offset their earnings.
“The finances of airlines would improve in 2012-13 on the back of better pricing of tickets due to rationalisation of capacity. Capacity addition would also be moderate and the airlines would make money,” said Kapil Kaul, chief executive officer (South Asia), Centre for Asia Pacific Aviation.
He said the fourth-quarter numbers would look better because of Kingfisher cancelling flights, pushing up domestic fares. But the impact of good numbers may not show in the financials due to a rise in operating costs.
Compared to the last quarter of 2010-11, domestic fares were 15 to 18 per cent higher last quarter. But operating costs rose, as prices of jet fuel increased by 15 per cent and the rupee depreciated by over 11 per cent.
20/04/12 Mihir Mishra/Business Standard
To Read the News in full at Source, Click the Headline
0 comments:
Post a Comment