Airlines resist lowering fares in lean season to land profits

Feb 11 2013, 00:41 IST
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SummaryThe domestic aviation industry has broken away from the tradition of lowering fares to overcome a lean demand season, which could help the industry post another quarter of profits.

shift over to the other airlines; so even with higher fares, it shouldn’t be too difficult for airlines to match last year’s seat factors.”

Last year, Jet Airways had an average seat factor of 77.1% during the January-March quarter, while SpiceJet had a seat factor of 73.1%. However, the two airlines managed to achieve such seat factors due to low fares, which resulted in heavy losses. SpiceJet made a net loss of Rs 249.18 crore during the fourth quarter of 2011-12, while Jet Airways made a net loss of Rs 298.12 crore.

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