Muted yields and higher fuel prices to delay smooth landing for airlines
Losses of Indian aviation firms InterGlobe Aviation Ltd and SpiceJet Ltd declined on a sequential basis for the quarter ended December.
InterGlobe runs IndiGo, India’s largest airline by market share. For perspective, IndiGo’s net loss for the December quarter dropped to ₹626 crore from ₹1,195 crore in the September quarter.
During the period under consideration, SpiceJet’s reported net loss declined to around ₹57 crore from ₹113 crore.
Even as traffic recovery is underway, risks loom for the sector. One, analysts do not expect yields to improve meaningfully from a near-term perspective. Yields are a measure of pricing for airlines.
