Wednesday, July 04, 2018

Aviation data hints at turbulence due to rise in ATF prices

Indian aviation industry has hit turbulence and this is evident from the monthly numbers reported by major airlines for the month of May 2018. The turbulence is, primarily, caused by a significant rise in the aviation turbine fuel (ATF) prices resulting in an increase in airfares.

The industry grew less than 20 percent year-on-year (YoY) in May despite it being the holiday season. It was in fact, the first time in five months that the growth was below 20 percent. Industry load factor contracted 170 basis points (bps) month-on-month (MoM). This was due to substantial fall of 680 bps in revenue passenger kilometers (RPK).
04/07/18 Nitin Agarwal/moneycontrol