Thursday, August 16, 2018

Aviation times: Jet hits turbulence, prefer IndiGo and SpiceJet

Airline companies are facing twin challenges: pressure on passenger yields on the back of fever pitch competition and significant rise in air turbine fuel (ATF) prices. Their financials are clearly feeling the heat, despite an increase in passenger traffic, improving utilisation and government’s accommodative policy. It is no surprise that the one weakest on the cost curve, Jet Airways, is the worst hit.
Players having excellent network, cost management, performance and sound financial health are well placed.
Despite falling ATF prices and industry dynamics in last 2-3 years, Jet Airways could not gather enough dry powder to keep it viable during the current turbulence. Deferment of its Q1 FY19 earnings has added to investor worries.
16/08/18 Nitin Agarwal/moneycontrol
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