Latest news with #financiallosses
Skift
27-05-2025
- Business
- Skift
Indian Aviation Faces Bumpy Start to Fiscal 2026, But Outlook Stays Stable
The domestic air traffic in April was over 10% higher year-on-year. However, there was a decline compared to March 2025 - down from 14.88 million to 14.55 million, according to data from credit ratings agency ICRA. ICRA also noted that the airlines' capacity deployment in April declined by 4.2% compared to the month before. During the 2024-25 financial year, the air passenger traffic increased 7.6% year-on-year. The traffic was also nearly 17% up from pre-Covid levels. ICRA said that the year-on-year growth was moderate 'given the high base of the 2024 financial year and lower passenger traffic in the first half of the 2025 fiscal, impacted by severe heat waves and other weather-related disruptions.' Forecast for 2025-26: Despite the decline in April, the credit ratings agency maintained a stable outlook for the industry, driven by moderate growth in traffic and a relatively stable cost environment. ICRA projected that domestic air traffic in 2025-26 will grow by 7-10% this year. International traffic is likely to grow by a significant 15-20%, it added. But the India-Pakistan conflict might impact the industry. ICRA noted, 'The recent cross border escalations may have a lingering effect on the demand for travel and hospitality services in the near term and will remain monitorable.' Indian airlines are also likely to post net losses, continued from the previous fiscal year. These losses are projected to be between INR 20-30 billion ($235-352 million). 'The losses are expected to continue as compared to a net profit of around INR 16 billion ($188 million) in 2023-24 fiscal year, due to anticipated pressure on yields as airlines strive to maintain adequate passenger load factor amid continued elevated aviation turbine fuel prices. Further, the higher borrowing costs, due to increased lease liabilities with the scheduled aircraft deliveries for select airlines, are likely to increase the interest burden,' the agency further noted. TBO Tek Records 43% Growth in Global Markets B2B travel platform TBO Tek recorded a 43% growth in gross transaction value in international markets during the 2024-25 financial year, the company said in its earnings call. It witnessed significant growth in Europe, APAC, the Middle East, and Americas, it added. During the year, the company also expanded its presence to 15 new countries. TBO Tek noted growth in its hotels and ancillaries segment in India and abroad. Co-Founder Ankush Nijhawan said that in India, the hotels and ancillaries segment contributed 16% to the gross transaction value. 'We are strategically focused on driving higher share of wallet through cross-sell initiatives, supported by robust demand for outbound travel and a clear shift in consumer preference toward experiential, high-value itineraries,' Nijhawan said. The company also decided to accelerate market expansion and implement AI-driven technologies in this segment. It launched its 'next-generation' hotel booking platform H-Next in India and international markets, while also automating back-end processes. Marriott's New Brand Is Called Series by Marriott Marriott International has launched a new global brand — Series by Marriott — aimed at the midscale and upscale hotel segments. Marriott has chosen to debut this brand in India, Skift reported. Last Thursday, the world's largest hotel company announced that India will serve as the starting point for Series by Marriott. With this, the company has signed a foundational agreement with hotel management firm Concept Hospitality, known for its environment-focused Fern brand. Marriott also confirmed a 'small equity investment' in Concept Hospitality. On the amount being invested, Rajeev Menon, president, Asia Pacific excluding China, Marriott International, said at the press conference in Mumbai on Thursday: "Marriott does not plan to disclose the exact workings of the deal." However, this is a significant move for Marriott, which traditionally expands through management and franchise agreements rather than direct equity involvement. This is also Marriott's first direct investment in the Indian hotel sector, signaling a deeper shift in its strategy, where India is not just a growth market. These moves come as Marriott's leadership has been clear about India's growing importance in its global plans. The hotel company expects India to become its third-largest market. The Leela's $400 Million IPO to Fund Luxury Expansion in India No new brands. Niche luxury segments. That is what The Leela is planning post its IPO – $400 million (INR 35 billion) offering that opened on Monday. Parent company Schloss Bangalore aims to use proceeds to pay down debt, said Ankur Gupta, managing partner at Brookfield Asset Management, which acquired The Leela in 2019. The remaining IPO proceeds are meant to be used for acquisitions, marketing, and other initiatives at the company, which has 13 properties, including five owned hotels. By 2028, The Leela's inventory will reach 4,200 keys, about 18% of the total luxury rooms in the country, Bhatnagar said. Currently, the company accounts for over 10% of the rooms in the luxury hotels space in India, according to The Leela's estimates. The pipeline is a part of The Leela's efforts to diversify its luxury offerings in different niche segments. In its prospectus, The Leela said that it will focus on gateway cities such as Mumbai, wildlife destinations, heritage spaces, wellness destinations, and spiritual tourism destinations for expansion. Schloss Bangalore is also not planning to move away from luxury and ultra-luxury. 'There is a lot of opportunity in this space,' said CEO Anuraag Bhatnagar. 'We have refined and perfected ourselves in the luxury space,' he added, when asked about why the company is choosing to remain in the luxury segment and not diversify. India's Luxury Hotels Are Underpriced, Says Oberoi CEO Luxury hotels in India are 'significantly underpriced,' according to Vikram Oberoi, managing director, CEO and executive director of EIH Limited. Oberoi said he's keen to change that. 'Our objective is to drive our rates higher, and we've done that during the financial year, and we'll continue to do that going forward,' Oberoi said during the company's earnings call on Monday. EIH Limited operates the Oberoi and Trident hotel brands. Oberoi even suggested the company would rather sacrifice some occupancy if that means stronger pricing. 'If demand continues to be as it is today, our endeavor will be to drive rates up to the largest extent possible, and even if that is at the cost of occupancy. As long as our RevPAR sees strong growth, and I don't see any reason why that will change.' EIH's financial results back Oberoi's confidence. The company delivered its best-ever performance. EIH reported a 13% year-on-year increase in consolidated EBITDA to INR 11.5 billion ($135 million) for fiscal 2025. Net profit rose by 14% to INR 7.7 billion ($90 million). Revenue from operations grew 9% on a standalone basis to INR 25.35 billion ($298 million) and 10% to INR 28.8 billion ($338 million) at the consolidated level. India Extends Airspace Ban for Pakistan Till June 23 India has extended its airspace ban for flights operated by Pakistan airlines by another month till June 23, according to news agency PTI. The ban was imposed on April 30 after the terror attack in Pahalgam killed 26 tourists on April 22. It was set to expire last Friday (May 23) before it was extended. The airspace ban means that aircraft registered in Pakistan and planes operated, owned, or leased by Pakistan will not be able to fly through the Indian airspace till June 23. The ban will also be applicable to the country's military aircraft. The development comes amid continuing tensions between the two countries post the terror attack. Since the attack on April 22, in a series of events, India suspended the Indus Water Treaty with Pakistan, and both the countries shut down the only operational land border crossing at Attari. Both the countries asked diplomats and citizens of the other nation to leave, and closed their airspaces. The diplomatic tensions continue even as the armed conflict has been halted amid a ceasefire understanding between India and Pakistan. Agoda Partners with Indian Hotels Company Online travel company Agoda has entered into a partnership with Taj-parent Indian Hotels Company (IHCL). The partnership will allow Agoda's customers to access IHCL's portfolio of 250 operational properties through the OTA's platform. According to Puneet Chhatwal, CEO of IHCL, the partnership will support the hotel chain's goal of driving global awareness for the company's brandscape. In a joint statement, the companies said that through the alliance, Agoda's expanding userbase of international and intra-regional travelers from Asia Pacific and Middle East regions will be exposed to IHCL's offerings. Agoda noted that these regions are witnessing an increase in demand for culturally rich, luxury travel - which is in line with IHCL's positioning.
National Post
17-05-2025
- Business
- National Post
Canada Post is 'effectively bankrupt,' should phase out door-to-door letter mail delivery: report
Canada Post's already precarious position worsened after the recent national strike since a number of long-standing customers reportedly moved their business elsewhere. Photo by Christinne Muschi/The Canadian Press/Postmedia files Canada Post needs to phase out its daily door-to-door letter-mail delivery service for individual addresses and also make other changes to reverse its growing financial losses, according to a new report released on Friday. THIS CONTENT IS RESERVED FOR SUBSCRIBERS Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. SUBSCRIBE FOR MORE ARTICLES Enjoy the latest local, national and international news. Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events. Unlimited online access to National Post. National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on. Daily puzzles including the New York Times Crossword. Support local journalism. REGISTER / SIGN IN TO UNLOCK MORE ARTICLES Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account. Share your thoughts and join the conversation in the comments. Enjoy additional articles per month. Get email updates from your favourite authors. THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK. Create an account or sign in to continue with your reading experience. Access articles from across Canada with one account Share your thoughts and join the conversation in the comments Enjoy additional articles per month Get email updates from your favourite authors 'It cannot continue to require impossible-to-meet delivery standards,' said the report by the Industrial Inquiry Commission (IIC) that was created to review the key issues in the collective bargaining dispute between Canada Post and its workers. The commission is led by William Kaplan, an arbitration and mediation expert. The report said that Canada Post is facing an 'existential crisis' and that it is 'effectively insolvent or bankrupt.' Without immediate interventions, its fiscal situation will 'continue to deteriorate,' it said. Get a dash of perspective along with the trending news of the day in a very readable format. By signing up you consent to receive the above newsletter from Postmedia Network Inc. Please try again Among the other changes, the report said that Canada Post needs to be able to hire part-time employees to deliver parcels on the weekend and assist with volumes during the week. 'These employees should be paid the same rates and be subject to the same terms and conditions as regular employees,' it said. It also said that the moratoriums on rural post office closures and community mailbox conversions should be lifted. This is a policy that was adopted by the federal government in 1994. It prevents Canada Post from closing or franchising nearly 3,600 post offices that were identified as being in rural areas in 1994. Such a step could make Canada Post's operations more efficient and save money, the report said. 'The Government of Canada can decide to subsidize Canada Post's growing deficits indefinitely. Or necessary changes can be made to modernize the way Canada Post goes about its business,' the report said. 'The moratoriums no longer make sense … when letter mail is down, and will likely soon disappear, and when the future of Canada Post is hanging in the balance.' The report also stated a number of reasons behind Canada Post's downfall. They include the rise of parcel delivery competitors, certain work rules that restrict efficiency, such as not being able to assign existing employees with additional work once they have finished their assigned tasks. It also said that the organization's situation worsened after the recent national strike since a number of long-standing customers reportedly moved their business elsewhere. These changes are just the 'first steps,' the report said. In the long run, Canada Post needs to catch up with its competitors. 'Seven-day-a-week parcel delivery must be followed by continual technological innovation just to keep what part of the parcel market Canada Post currently retains, much less to grow the business,' it said. Doug Ettinger, Canada Post's chief executive, lauded the report and said in a statement that it provided Canadians with a ' straightforward assessment of the challenges' that the organization faces.
News24
08-05-2025
- Business
- News24
NZ Rugby posts $11.6 mn loss, admits financial model ‘not sustainable'
New Zealand Rugby recorded sizeable losses in yearly accounts released on Thursday, with chief executive Mark Robinson saying its commercial model was 'not sustainable' despite a contentious private equity cash injection. Robinson pointed to high fixed costs, which include player wages, as the governing body booked losses of NZ$19.5 million (US$11.6 million) in its annual report for 2024. Robinson said the current financial model was 'not sustainable' and there was 'much work to do to get the shape of our game right'. READ | Coach Foote after Junior Boks let slip 17-0 lead: 'Australia deserve a lot of credit' New Zealand Rugby oversees the powerhouse All Blacks men's team, a highly lucrative global sporting brand in its own right. But critics say they have not capitalised on their marketability in the way other leading brands in sports such as Formula One and English football have done. Sponsorship deals and broadcast rights helped to put US$170 million in the governing body's coffers last year, the accounts showed, which was a 'record level of income'. But foreign exchange turbulence and investment in other areas of the business turned this into a loss. 'New Zealand Rugby retains an incredibly strong balance sheet, which is vital for rugby in New Zealand and its ability to weather any major shocks,' said chair and former All Blacks captain David Kirk. US private equity firm Silver Lake secured a US$120 million stake in New Zealand Rugby and the All Blacks in 2022. Under that deal, Silver Lake, a fund manager specialising in private equity investments and whose growing stable of sports interests includes Manchester City, took a 5.8 percent stake in a new commercial entity operated by New Zealand Rugby. New Zealand Rugby was hit hard by the coronavirus pandemic, and its provinces have been losing money for several years as spectator numbers fall.
