
This chart shows claim settlement ratio of life insurance companies... Read On
Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2019 Edition) on picking money-making stocks.
This is an entirely free service. No payments are to be made.India's aviation industry is on a high-growth trajectory. India's domestic air traffic has seen a prolific growth of 20-25% during 2015 and 2016. And in 2017, it tapered to 17.4%. However, for the first time, domestic air traffic crossed an important landmark of 100 million passengers in a calendar year.
Air travel has recorded double-digit growth for 40 consecutive months, thanks to low fares, the addition of new flights/destinations, and overall growth in the economy.
What's foreseeable for India's aviation traffic in 2018 is some pressure on the back of the consistent rise in crude oil prices. Earlier this month, Brent crude oil briefly breached US$70 per barrel and touched its highest level since December 2014. Crude prices have been driven up by production curbs in OPEC nations and Russia, as well as by robust demand on the back of healthy global economic growth.
Oil prices are closely monitored by the Indian air carriers, as aviation turbine fuel is their single largest input cost. A sharp rise in the cost of fuel puts pressure on margins, and consequently an increase in air fares.
Although air travel is becoming the new normal, investors need to understand the industry dynamics before buying up aviation stocks.
Data Source: Business Standard, DGCA
This Chart Of The Day was published in The 5 Minute WrapUp - We Rejected this 1000-bagger... Here's Why
This chart shows claim settlement ratio of life insurance companies... Read On
This chart shows the top 5 countries in terms of improvement in HDI over past 2 decades... Read On
The chart shows the top 20 multibagger stocks over the past decade.... Read On
This chart shows the persistency rate of insurance policies.... Read On
Market Indices are touching a record high. Time to tread cautiously.... Read On
Equitymaster requests your view! Post a comment on "Indian Aviation Spreading its Wings". Click here!
Comments are moderated by Equitymaster, in accordance with the Terms of Use, and may not appear
on this article until they have been reviewed and deemed appropriate for posting.
In the meantime, you may want to share this article with your friends!