SME Times News Bureau | 06 Dec, 2017
Credit ratings agency
ICRA on Tuesday said that healthy passenger load factors, along with a decline
in competitive intensity is expected to aid the Indian aviation industry to
reduce its losses in FY2018.
As per a research note by ICRA, healthy passenger load factors supported by a
decline in competitive intensity due to moderation in capacity addition and
suspension of operations of three regional airlines has augured well for the
"This coupled with a gradual improvement in the core growth drivers like
economic environment, tourism demand and regulatory support and a strong demand
during the peak season is expected to support the industry profitability during
H2 FY2018," the research note said.
According to Kinjal Shah, Assistant Vice President & Co-Head, Corporate
Sector Ratings, ICRA, the aggregate net loss of the industry (which does not
includes Vistara and AirAsia India) is expected to reduce to "Rs 50
million to Rs 1 billion in FY2018 from Rs 10 billion in the previous year".
"It has to be noted that the loss is primarily on account of losses of Air
India, while all other major airlines are expected to report profits during the
year," he said.