Capacity addition likely to keep airlines yields under pressure

The capacity addition by domestic airlines is likely to keep their yields under pressure. The Indian aviation sector, at present, has a sizeable order backlog of new aircraft, which is 1.78 times the current fleet size of the industry. It expects 17-20 per cent growth in industry's ASKMs (available seat kilometers) during FY2018 backed by planned fleet addition of majority of the incumbents as well as new entrants, predominantly led by IndiGo. "With expected FY2018 capacity addition, the downward pressure on yields is expected to continue, while the costs are not expected to decline, keeping the cost per ASKM (CASK) high,". Recommendations on Share market and more go through our website from here link below and let us to know you more:


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