Despite an increase in passenger revenues of just 2.85% year-on-year, Air India has reported a jump of 60% y-o-y rise in EBITDAR (earnings before interest, tax, depreciation, amortisation and rentals) to R3,412 crore for the nine months to December. In 2015-16, the airline reported a loss of R2,636 crore, primarily because of the high outgo on interest of close to R4,500 crore.
While the price of aviation turbine fuel has risen by about 12% in the last six months to R52,540 per kilolitre, the national carrier has managed to rein in other costs such as expenses on maintenance.
Air India’s domestic yields have been under pressure — in the April to December period they declined 9.2% y-o-y to R4.56. Domestic passenger revenues decreased by 3.7% y-o-y while the same on the international network grew by 6.4% y-o-y.
Other airlines too have seen yields falling in recent months. The average yields at IndiGo, for instance, fell 13% in the December 2016 quarter although volumes rose 38% y-o-y. The management attributed the drop in yields to the competitive environment as also the impact of demonetisation. At SpiceJet, the fall in yields during the December 2016 quarter was a much lower 3% y-o-y while volumes rose 39% y-o-y.
17/02/17 Malyaban Ghosh/The Financial Express
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While the price of aviation turbine fuel has risen by about 12% in the last six months to R52,540 per kilolitre, the national carrier has managed to rein in other costs such as expenses on maintenance.
Air India’s domestic yields have been under pressure — in the April to December period they declined 9.2% y-o-y to R4.56. Domestic passenger revenues decreased by 3.7% y-o-y while the same on the international network grew by 6.4% y-o-y.
Other airlines too have seen yields falling in recent months. The average yields at IndiGo, for instance, fell 13% in the December 2016 quarter although volumes rose 38% y-o-y. The management attributed the drop in yields to the competitive environment as also the impact of demonetisation. At SpiceJet, the fall in yields during the December 2016 quarter was a much lower 3% y-o-y while volumes rose 39% y-o-y.
17/02/17 Malyaban Ghosh/The Financial Express
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