Mumbai: Credit rating agency Crisil has said that Indian carriers are set to post a combined operating profit of Rs 8,100 crore in the next fiscal year on a five-year-best operating performance, although most of them will be a long way off net profits.
The estimate, which the agency put out on a note on Tuesday, will likely bring some cheer to investors, amidst the bad news that has weighed upon the country's airline industry in recent times. "We believe Indian airline companies will have one of the best business environments to operate in for a long time. Falling crude oil prices are a big positive.
We expect about 25% lower air turbine fuel prices for fiscal 2016 compared with fiscal 2014," said Prasad Koparkar, senior director, industry and customised research at Crisil.
"More importantly, the fall is accompanied by an improving demand scenario, unlike fiscal 2010 when the players were unable to benefit significantly due to weak demand. We expect average passenger traffic growth to be about 10-12% over the next couple of years," he added. This, the report said will lead to a 14 percentage point improvement in operating profit margins to around 11% in FY16.
31/12/14 Economic Times
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The estimate, which the agency put out on a note on Tuesday, will likely bring some cheer to investors, amidst the bad news that has weighed upon the country's airline industry in recent times. "We believe Indian airline companies will have one of the best business environments to operate in for a long time. Falling crude oil prices are a big positive.
We expect about 25% lower air turbine fuel prices for fiscal 2016 compared with fiscal 2014," said Prasad Koparkar, senior director, industry and customised research at Crisil.
"More importantly, the fall is accompanied by an improving demand scenario, unlike fiscal 2010 when the players were unable to benefit significantly due to weak demand. We expect average passenger traffic growth to be about 10-12% over the next couple of years," he added. This, the report said will lead to a 14 percentage point improvement in operating profit margins to around 11% in FY16.
31/12/14 Economic Times
