Mumbai: Indian airline companies are set to benefit from appreciating Rupee, temporary shutdown of Kingfisher, capacity discipline and improvement in utilistions and yields due to onset of busy season, said Bank of America Merrill Lynch in a report. "While we expect weak Q2FY13 results on account of seasonality, we could see a sharper than expected recovery in the seasonally strong Q3," it said.
The airline industry is going through rough weather. Kingfisher and Indian Airlines have been affected by high debt and employee unrest.
Rupee has appreciated 6 per cent vis a vis the US dollar over the past 5 weeks. Significant portion of domestic Indian airlines costs are US$ denominated. Each 1 per cent appreciation in Rupee improves FY13E EBITDAR by 0.4 per cent, 1.8 per cent for Jet AirwaysBSE 2.29 % by 0.4 per cent and SpiceJet by 1.8 per cent, said the report.
12/10/12 Anindya Upadhyay/Economic Times
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The airline industry is going through rough weather. Kingfisher and Indian Airlines have been affected by high debt and employee unrest.
Rupee has appreciated 6 per cent vis a vis the US dollar over the past 5 weeks. Significant portion of domestic Indian airlines costs are US$ denominated. Each 1 per cent appreciation in Rupee improves FY13E EBITDAR by 0.4 per cent, 1.8 per cent for Jet AirwaysBSE 2.29 % by 0.4 per cent and SpiceJet by 1.8 per cent, said the report.
12/10/12 Anindya Upadhyay/Economic Times
