According to an ICRA note, the growth in passenger traffic was achieved as a result of peak season demand, whereby the passenger load factor (PLF) for the domestic aviation industry touched a new high of 88.9 per cent.
"Moderation in supply growth, peak season demand and sequentially stable ATF (air turbine fuel) prices augment well for the financial performance of airlines in Q1 FY2018," said Anand Kulkarni, AVP and Associate Head, Corporate Sector Ratings, ICRA.
"Indication of softening of fuel prices in Q2 FY2018 is also a positive for the industry. However, supply is likely to remain high going forward, considering the large order backlog of Indian airlines and the same might impact yields."
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
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Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.