New Delhi, Feb. 24 -- Losses of Indian aviation firms-InterGlobe Aviation Ltd and SpiceJet Ltd declined on a sequential basis for the quarter ending December. InterGlobe runs the IndiGo airline, India's largest market share. For perspective: IndiGo's net loss for the December quarter dropped to Rs626 crore from Rs1195 crore for the September quarter. During the same time frame, SpiceJet's reported net loss declined to around Rs57 crore from Rs113 crore.

Even as the traffic recovery is underway, risks loom for the sector. One, analysts don't expect yields to improve meaningfully from a near-term perspective. Yields are a measure of pricing for airlines. "Yields were pretty much muted in January but improved in February. Now, it all boils ...