Even as Kingfisher Airlines and Jet Airways claim to having achieved a break-even in the current fiscal, audit firms, analysts and aviation industry trackers are skeptical about those claims. In a recent Annual General Meeting (AGM) of Kingfisher Airlines held in Bangalore, Vijay Mallya, Chairman, Kingfisher Airlines stated that Kingfisher Airlines is expecting to achieve operational breakeven this month. Also, Jet Airways is expecting a break-even by the end of this fiscal. According to a report in today’s Economic Times (ET), analysts think that break-even claims made by these airlines will, however, be difficult to be achieved.
Daljeet S Kohli, Research Head, Emkay Global Financial Services stated, “The crude and Aviation Turbine Fuel (ATF) prices have seen a drop though a back-of-the envelope calculation indicates that a break-even in the current fiscal will not be possible. It will take some more months for the airlines to emerge from the debts.” Some believe that the objective of making these claims on break-even is to attract funding in some form. Jet Airways reported its worst quarterly performance in over three years, |