Moody's revises outlook on global airline industry to positive


By PTI | 19 Jan, 2015 
On the back of steep fall in the crude prices, international rating agency Moody's has changed its outlook of the global airline industry to "positive" from stable. 

It projected adjusted operating profit margins for the industry at 12-14 per cent for 2015 and 11.5-13.5 per cent for 2016, significantly up from its estimate of 8.5-9.5 per cent for 2014. 
While American carriers will continue to have the largest increase in profit, in Asia the capacity growth will outstrip the demand growth, it said. 
Moody's vice-president and senior credit officer Jonathan Root said in the report that Asian airlines are unlikely to add extra capacity in 2015, even with lower fuel prices. 

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