Mumbai: The struggling domestic aviation sector is likely to see a recovery in the third quarter on the back of a stronger domestic currency and temporary shutdown of Kingfisher Airlines, among others, according to a report.
"While we expect weak Q2 results on account of seasonality, we could see a sharper-than-expected recovery in the seasonally strong Q3.
"In the near-term domestic airline companies will benefit from an appreciating rupee, temporary shutdown of Kingfisher, capacity discipline and improvement in utilisations and yields due to onset of busy season," a Bank of America Merrill Lynch report said here today.
Noting that the rupee has appreciated close to 6% to the dollar in the last five weeks, the report said the appreciating rupee will also have an indirect impact through the prices of domestic fuel.
12/10/12 PTI/Business Standard
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"While we expect weak Q2 results on account of seasonality, we could see a sharper-than-expected recovery in the seasonally strong Q3.
"In the near-term domestic airline companies will benefit from an appreciating rupee, temporary shutdown of Kingfisher, capacity discipline and improvement in utilisations and yields due to onset of busy season," a Bank of America Merrill Lynch report said here today.
Noting that the rupee has appreciated close to 6% to the dollar in the last five weeks, the report said the appreciating rupee will also have an indirect impact through the prices of domestic fuel.
12/10/12 PTI/Business Standard
