Friday, October 12, 2018

Flyers Alert! Your airline still suffering; have airfares risen? Your festive season set to turn expensive

Nothing seems more frustrating during festive season than when your vacation planning takes a hit due to soaring expense. In the current scenario, Airlines like Jet Airways, Indigo, SpiceJet, GoAir, AirAsia, Vistara and Air India are sending virtually 'May Day' calls over the rising crude oil prices and weak rupee, despite getting ATF relief just days ago. It looks like, it will only be a matter of time, when you will be forced to pay hefty amounts for your air tickets, especially if you plan a holiday with family and friends internationally. However, no one can blame the airlines for following this method, the way they are suffering, they need some profit in their earning books.

The situation for airlines especially Jet Airways, GoAir, SpiceJet, Vistara and AirAsia is like flying in the air in thick stormy clouds - the turbulence is terrible and can have very negative repercussions.

Currently, it is the environment of low fares and capacity that drive market leadership, and Indigo especially is doing a great job in it. Where the industry is in turmoil with ATF prices continuing to rise by 20% from April to October 2018, Indigo has aggressively added capacity, grabbing 41.9% market share.

This has now resulted in a double whammy - high yield and cost pressure for an industry struggling to recover.

According to Ambit, there are four things that is happening in the aviation industry.

Firstly, Indigo is possibly targeting the struggling Jet Airways, which has lost 1.4% passenger market share, on the other hand Indigo has gained 2.2%.
12/10/18 ZeeBiz

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