Business
Brent crude below $60 a barrel will lead to a recovery in profit margins of Asian airlines in coming quarters
Updated : Apr 11, 2019, 05:30 AM IST
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