Mumbai: Domestic carriers are expected to post an operating profit of Rs 81 billion in fiscal 2016, a complete "U-turn" from the Rs 15 billion loss posted in fiscal 2014, rating agency Crisil Research said in a report. Net profit remained a distant destination for Air India, Jet and Spice Jet and can be reached only after massive re-capitalisation of Rs 350 billion, the report said.
The last few months have seen tailwinds converging for India's airlines such as improvement in demand and therefore passenger load factors (PLFs), a largely stable rupee-dollar exchange rate, and most importantly, a steep fall in crude oil prices.
"At an aggregate level, domestic carriers are expected to post an operating profit of Rs 81 billion in fiscal 2016, a complete U-turn from Rs 15 billion loss posted in fiscal 2014. That translates into a spectacular 14 percentage point improvement in operating profit margin to around 11% in fiscal 2016," Crisil said.
30/12/14 PTI/Daily News & Analysis
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The last few months have seen tailwinds converging for India's airlines such as improvement in demand and therefore passenger load factors (PLFs), a largely stable rupee-dollar exchange rate, and most importantly, a steep fall in crude oil prices.
"At an aggregate level, domestic carriers are expected to post an operating profit of Rs 81 billion in fiscal 2016, a complete U-turn from Rs 15 billion loss posted in fiscal 2014. That translates into a spectacular 14 percentage point improvement in operating profit margin to around 11% in fiscal 2016," Crisil said.
30/12/14 PTI/Daily News & Analysis
