Chennai: The festive season is expected to bring in some cheer to the beleaguered airlines industry with airlines companies expected to benefit from an appreciating rupee, temporary shutdown of Kingfisher and improvement in yields and utilizations due to the onset of the busy season. While we expect weak quarter two results (FY13) on account of seasonality, we could see a sharper than expected recovery in the seasonally strong third quarter, a recent report on the airlines industry by Bank of America Merrill Lynch stated.
Moreover, the appreciating rupee will also have an indirect impact through prices of domestic fuel. The temporary shutdown of Kingfisher is also seen as a marginal positive for remaining carriers as this further consolidates the industry and eases supply prior to the busy season. We do not expect Kingfisher to normalize its operations in the near term, the report added.
13/10/12 Aparna Ramalingam/Times of India
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Moreover, the appreciating rupee will also have an indirect impact through prices of domestic fuel. The temporary shutdown of Kingfisher is also seen as a marginal positive for remaining carriers as this further consolidates the industry and eases supply prior to the busy season. We do not expect Kingfisher to normalize its operations in the near term, the report added.
13/10/12 Aparna Ramalingam/Times of India
