Market turbulence will last two quarters: SpiceJet

New Delhi: The current turbulence in India’s aviation sector, which has seen passenger demand decline in recent months, is unlikely to fade away for at least the next two quarters, said a top executive of SpiceJet Ltd, India’s second-largest private airline.

Although other airlines have quickly filled in the capacity void left by the collapse of Jet Airways (India) Ltd earlier this year, they were forced to offer low fares on new routes, affecting their yields, said Ajay Singh, chairman and managing director, SpiceJet. In aviation, yield is the average fare per passenger per kilometre, or mile.

He added that the dismal situation in the aviation market is temporary, but “the long-term growth (potential) remains pretty strong”.