IndiGo president Aditya Ghosh said the carrier will see a decline in FY2012 profits due to high fuel costs and low margins, as reported by the Business Standard. "Margins were under huge pressure because average price of fuel is now higher than what it was in 2009. There has been a growth in revenue and we will turn out to be profitable at end of the year. It will be much smaller profit than we have done in previous year,'' he said. The carrier reported 18% increase in profit to INR6.5 billion (USD130 million) in FY2011 but expects the FY2012 result to be a "fraction" of this figure. "For us profitability means that we are able to get spare parts on time, pay salaries on time, maintain integrity of schedules and plan for growth," he stated.
IndiGo profits in FY2012 to be a 'fraction' of the USD130m profit result in FY2011
You may also be interested in the following articles...
India is driving expansion in South Asia
Aviation activity in South Asia in 2017 is expected to be dominated once again by India, currently the fastest growing large market in the world. As India goes through one of the brightest periods of its economic and aviation growth, the prospects look more positive for sustainable growth than recent history has delivered.
Alitalia: "everyone has to pull in the same direction" – ongoing issues, and viability is at stake.
After Alitalia’s board approved the second phase of its business plan on 22-Dec-2016, CEO Cramer Ball stressed the importance of achieving the support of its workforce. He said, “Everyone has to pull in the same direction to make Alitalia a viable, sustainable success story and help the airline achieve its ambition of long-term growth and profitability”. Alitalia suffered strike action from some flight crew in 2016.
Full details of the plan, which has received the support of Italy's government, have not yet been made public. Alitalia's network strategy includes further long haul growth and a reworking of its short haul operation, with an emphasis on feeding long haul via Rome and Milan. Other elements of the plan include cost-cutting, reduced headcount and possible changes to joint venture agreements. Details are to be presented to Alitalia’s workforce in Jan-2017.
Also on 22-Dec-2016, Alitalia's shareholders approved short-term funding and gave management 60 days to begin negotiations with key stakeholders - lessors, suppliers and distribution companies, in addition to trade unions. Alitalia needs their support for deep cost reduction measures, in order to win the long-term financing needed to secure the airline's future.