Aviation Sector Deep-Dive Analysis - Airfares And Passenger Demand: Motilal Oswal
A passenger aircraft in flight. (Photographer Andrew Harrer/Bloomberg)

Aviation Sector Deep-Dive Analysis - Airfares And Passenger Demand: Motilal Oswal

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

Motilal Oswal Report

The Ministry of Civil Aviation has extended domestic airfare bands (floor and cap) up to March 31, 2021 (versus up to February 24, 2021, earlier) or until further notice.

With this extension, MoCA has reduced the quantum of tickets to be sold below the median fare of the airfare band to 20% (versus 40% earlier).

Theoretically, this downward revision would increase weighted-average airfare for companies.

Reflecting on airfares since May, as per our airfare tracker, fares peaked in October 2020 (up approximately 40%), led by pre-festive demand.

Click on the attachment to read the full report:

Motilal Oswal Aviation Sector Update.pdf

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