Chennai: Private airlines could turn profitable in the December quarter on strong yields and better load factors. The private carriers collectively could post a profit of $120-140 million for the quarter although Air India will keep the sector in the red, says CAPA (the Centre for Asia Pacific Aviation) India.
The airlines are hoping for a robust second half. October has not lived up to expectations, with most carriers breaking-even and some posting modest losses. However, November and December looks encouraging, said CAPA India, which tracks the aviation sector, in its report.
Despite the projected strength, the hostile cost environment — over some of which management has limited control such as cost of fuel and the depreciation of the rupee — continues to impact all carriers, it said.
According to CAPA India, the first quarter was the best in 18 months. All private Indian carriers, excluding Kingfisher, were profitable. In several cases, this was due to sale-and-leaseback and other income.
27/10/12 Business Line
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The airlines are hoping for a robust second half. October has not lived up to expectations, with most carriers breaking-even and some posting modest losses. However, November and December looks encouraging, said CAPA India, which tracks the aviation sector, in its report.
Despite the projected strength, the hostile cost environment — over some of which management has limited control such as cost of fuel and the depreciation of the rupee — continues to impact all carriers, it said.
According to CAPA India, the first quarter was the best in 18 months. All private Indian carriers, excluding Kingfisher, were profitable. In several cases, this was due to sale-and-leaseback and other income.
27/10/12 Business Line
