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Benign crude oil to ease margin pressures of Indian aviation companies in 2019

Brent crude below $60 a barrel will lead to a recovery in profit margins of Asian airlines in coming quarters

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Domestic aviation companies like IndiGo are likely to outperform their peers amid strong load factors and marginal improvement in yields, said a Bloomberg report

30% – Drop in oil prices in 2018 to change earnings outlook of Asian airlines

$60-70/bbl – Oil expected to trade in 2019

39% – Decline in y-o-y adjusted net income of Asian airlines in Q3 2018

26-29% – Higher fuel bills in first half of 2018 reported by Air China, China Eastern and China Southern

Brent crude below $60 a barrel will lead to a recovery in profit margins of Asian airlines in coming quarters

Price-sensitivity in markets such as India and the growing rivalry has precluded airlines from passing higher fuel costs onto customers, as fare hikes dent their load factors and crimp demand,"  
The report added

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