The ratings agency also said that with new carriers expected to enter the market, the competitive intensity in the domestic aviation industry is likely to increase further.
With airlines entering into a near price-war situation once again, domestic rating agency ICRA on June 1 said they should focus on securing their bottom lines by controlling costs, though it projected a better year ahead
Also, rates of non-subsidised kerosene were increased by Rs 54 paisa to Rs 43.18 per litre. Aviation Turbine Fuel (ATF) price in Delhi was raised by Rs 2245.92 per kilolitre (kl), or 5.48 percent, to Rs 43,184.16 per kl, oil companies announced today.
The fare hike was triggered by Chennai-headquartered low-cost carrier SpiceJet, which increased fares by a hefty 30 percent earlier this week citing rise in input costs in the wake of the rupee fall and a 6.9 per cent increase in the jet fuel prices by oil marketing firms from September 1.
Shares of IOC, BPCL and HPCL gained between 1-2 percent in early trade Tuesday, after oil retailers raised diesel price for retail selling by 50 paise a litre (excluding value added tax). However, shares erased some early gains on profit booking.
Jet fuel (ATF) prices were today cut by 5.3 per cent, the second steep reduction in rates in one month.
Profits of airlines in most parts of the world in the third quarter of this financial year have gone up compared to the same period last year, indicating optimism in the global financial markets, IATA has said.
International Air Transport Association (IATA) CEO Tony Tyler explained to CNBC-TV18 about his concerns regarding skewed taxation of jet fuel prices and the steep hike in airport charges.
Steep operational costs and low air fares in India are causing sustained losses for domestic airlines, Jet Airways chief Naresh Goyal said today.
Three Indian carriers, which have been permitted to directly buy jet fuel from foreign sources, would together import almost 13 lakh kilo litres (kl) of the fuel at a cost of about Rs 5,780 crore for the present.
After three consecutive price hikes, state-owned oil companies today cut jet fuel rates by 1.3% in step with softening in commodity's international rates.
State-owned oil companies on Tuesday hiked jet fuel prices for the second time this month, raising rates by a steep 2% with effect from midnight.
After a one-off reduction, state-owned oil companies today hiked jet fuel prices by a steep 3.8% in line.
With jet fuel prices hiked by 2.5%, Jet Airways today increased fuel surcharge on its tickets by Rs 200 with effect from tomorrow, raising airfares.
With major airlines suffering huge losses, air fares are unlikely to witness any decline despite oil companies cutting jet fuel prices for the second time in a month.
For the second fortnight in a row, state-owned oil companies on Tuesday cut jet fuel prices by about 4% after international oil rates cooled off from a two-year high.