IndiGo, SpiceJet get wings to fly higher

Demand growth, pricing discipline favouring airlines; sustained oil prices above $60-level can play spoilsport: Analysts

The prospects for listed aviation companies remain strong, driven by robust demand, moderate capacity additions and cost-cutting efforts. 

While a sharp rise in aviation turbine fuel (ATF) cost has played a spoilsport, airlines have been able to pass it on, thus maintaining their profitability in the first half of FY18. 

Rating agency ICRA said the industry’s ability to mitigate the 8.7-per cent increase in fuel costs came on the back of a lower competitive intensity resulting in an improvement in higher per unit profitability and better financial performance in FY18. 

Given the overall scenario, analysts said there were gains to