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Wednesday 29 October 2014

Airlines' losses soar on high fuel costs in FY14

New Delhi: For the year ended March this year, India’s top five domestic airlines reported combined losses of Rs 9,737 crore, an increase of 85 per cent compared with Rs 5,276 crore in the previous year.

But for IndiGo and GoAir’s combined net profit of Rs 323 crore, the losses would have stood at Rs 10,060 crore.

More than half the overall losses were accounted for by those reported by Air India. The state-owned airline’s net loss declined to Rs 5,388 crore in FY14 from Rs 5,490 crore the previous financial year. While Jet Airways’ net loss rose about sevenfold to Rs 3,668 crore, SpiceJet’s increased about four times to Rs 1,003 crore.


Experts said a rise in fuel costs, as well as currency depreciation, hit the earnings of all domestic carriers. While the losses of Jet Airways, Air India and SpiceJet widened in the last financial year, IndiGo’s profit dropped 60 per cent to Rs 317 crore. Wadias-promoted GoAir saw its net profit slump to Rs 5.44 crore from Rs 104 crore in FY13, according to data from the Ministry of Corporate Affairs.
Read news in full 25/10/14 Sharmistha Mukherjee/Business Standard

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