Rise in fuel costs, slide in rupee to hit Indian airlines: report

Rise in fuel costs, slide in rupee to hit Indian airlines: report

Aviation in India will be impacted by the rise in fuel costs in the first quarter of 2017. The slide in the value of the rupee will also impact the earnings of all airlines, Martin Consulting said in its ‘Review of Indian aviation in 2017’ report.

Passenger traffic

The report warns that the increase in global aviation fuel prices could result in “casualties” among Indian airlines.

The report points out that the projected rise in global aviation fuel prices is expected to cast a shadow on passenger growth numbers in the near term adding that much of the over 20 per cent growth in domestic passenger carriage is on account of airlines managing to absorb costs to churn out sustainable air fares.

“This will be tested in the course of the coming year,” the report says.

The report which was released on Sunday adds that demonetisation will add to the negative sentiments affecting GDP growth, access to travel is likely to be impacted and airlines may find it a challenge to sustain growth and yields should airfares increase. Martin Consulting works with airlines in India, South-East Asia, Africa, East Europe and Africa.

CAPA warning

Interestingly the Centre for Asia Pacific Aviation (CAPA) had also warned as early as end-December that the on-going demonetisation drive and the roll out of the Good and Services Tax (GST) sometime in 2017 could impact the growth prospects of the domestic aviation industry in the next fiscal.

“The Government’s demonetisation move could impact the growth of the domestic civil aviation market by as much as 3-5 per cent in 2017 though the next fiscal is expected to be the third consecutive year of domestic growth above 20 per cent,” CAPA Aviation Outlook for Fiscal 2018 had estimated.

News Source: www.thehindubusinessline.com

About author

TnH Global
TnH Global 3892 posts

Our platform is the most comprehensive, current and accurate content destination for tourism that also offers the opportunity to connect and network with quality buyers and sellers.

Name: TnH Global              Email: admin@tnhglobal.com

You might also like

Latest

Air India Express plans fleet expansion, eyes more overseas routes

Profit-making Air India Express is preparing a 10-year vision document as it looks at expanding its fleet and flying to more foreign destinations, a senior airline official said. The plan

Slider

Mandarin Oriental, Hong Kong presents exclusive package for Art Lovers

“Warhol in China” – Landmark Photography Exhibition Showcased at Mandarin Oriental, Hong Kong! Mandarin Oriental, Hong Kong will celebrate the season for art with the Warhol Art Package featuring the

Aviation

Munich Airport chosen as Europe’s Best Airport

Munich Airport can again enjoy the title of “Europe’s Best Airport” in 2018. The Bavarian hub was selected for the honor in the annual World Airport Awards announced by the

0 Comments

No Comments Yet!

You can be first to comment this post!