Indications from latest air travel bookings suggest that airlines saddled with losses totalling Rs 10,000 crore in 2008-09 and desperately short of funds could be looking at a revival.
The first fortnight of October witnessed a 35 per cent jump in online air ticket bookings compared with the same period last year and experts believe the uptick may extend to two or three quarters ahead. It was 28 per cent in the previous fortnight.
“Growth would be sustainable this time. We are quiet upbeat about the future,” said Ankur Bhatia, managing director, Amadeus India, the platform that handles more than 60 percent online air reservations in India.
Increased demand could help capacity utilisation in Jet Airways and Kingfisher Airlines, Bhatia said.
A rebound in business confidence, a revival in the stock market and a rise in industrial growth are among factors spurring increased air travel, in addition to festival season travel.
Civil Aviation Minister Praful Patel told reporters in Mumbai last week that sentiments had improved to suggest recovery, but added that the pace may be slower than during the earlier rebound.