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Showing posts with the label it seems it is too early to point to a sustainable recovery for aviation sector.

Though four out of six domestic airlines were in black in the first quarter of this year, it seems it is too early to point to a sustainable recovery for aviation sector.

The ATF fuel is at a record high above Rs 70,000 per kilolitre now and Delhi Airport International Limited (DIAL) also increased Delhi airport charges by 343% from mid-May. The fuel hike severely impacts airlines' costs as it contributes around 40 to 50% of the airlines' business . In an interview with Business standard, Neil Mills, Chief Executive Officer of Spicejet said, “The service tax that is coming in from April of this year, increase in Delhi airport costs from the middle of this May, deterioration in exchange rate from January and particularly with the increase in fuel from June this year, it just seems to be a sort of, one blow after the next. The industry is in tough times at the moment.” We think that we can get through this. But it will be those with the best cost base and adequate funding which will come out the other end of this, he added. The Centre for Asia Pacific Aviation (CAPA) Research and Market analysis also said, “The fact that for most carrie