Mumbai: Profits of airlines globally are shoring up after plunging in the first half of this fiscal, but the Indian carriers would continue to bleed on account of rising costs and low passenger traffic, experts said.
Airlines world over are expected to earn $4.1 billion in 2012, up by $1.1 billion from the $3 billion forecast by the travel body in June, according to International Air Transport Association’s (IATA) revised forecast on aviation sector for 2012.
“The fall in airline profits from the $8.4 billion that the industry earned in 2011 will be cushioned by improved airline performance,” it said.
According to the association, the industry’s net profit margins would be 0.6% (up from the previous forecast of 0.5%) in 2012 as against 1.4% in 2011.
However, experts said the short-term forecast for Indian airlines was still negative as increasing fuel costs, high airport taxes, rupee devaluation and high maintainence costs would dent their profitability.
02/10/12 Yuga Chaudhari/Daily News & Analysis
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Airlines world over are expected to earn $4.1 billion in 2012, up by $1.1 billion from the $3 billion forecast by the travel body in June, according to International Air Transport Association’s (IATA) revised forecast on aviation sector for 2012.
“The fall in airline profits from the $8.4 billion that the industry earned in 2011 will be cushioned by improved airline performance,” it said.
According to the association, the industry’s net profit margins would be 0.6% (up from the previous forecast of 0.5%) in 2012 as against 1.4% in 2011.
However, experts said the short-term forecast for Indian airlines was still negative as increasing fuel costs, high airport taxes, rupee devaluation and high maintainence costs would dent their profitability.
02/10/12 Yuga Chaudhari/Daily News & Analysis
