Airline operators are set to repeat stellar quarterly results for a second straight quarter, owing to robust numbers for the quarter ended March 2023. Factors such as healthy air traffic and lower prices of aviation turbine fuel (ATF) — or jet fuel — are likely to have driven profitability for airlines in the final three months of the financial year 2022-23, say analysts. InterGlobe Aviation, the operator of airline IndiGo, and SpiceJet are yet to report their financial results for the three-month period. 

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Investors keenly await the financial results from the aviation space as the India Inc earnings season gathers steam. The quarterly numbers from airline operators are due at a time when the industry has staged a receiver from the depths of the pandemic with gradual growth in passenger traffic.

However, some analysts warn that further weakness in the rupee can be a key challenge for the aviation industry. The rupee finished at 81.84 against the US dollar on Thursday, within 1.5 per cent of an all-time low hit in October last year.  

Here's what analysts expect from the upcoming quarterly numbers from the commercial aviation space:    

Lower jet fuel cost 

Aviation companies are expected to witness 65 per cent year-on-year (YoY) growth in revenue, mainly boosted by lower fuel costs, according to Mitul Shah, Research Analyst at Reliance Securities. Fuel accounts for the lion's share in airlines' operating costs.  

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