Weak rupee adds to woes of ailing airlines

Mumbai: The 25 per cent rupee depreciation and the 40 per cent hike in crude oil prices over the past year have exerted pressure on the profitability of airline companies in the country.
Fuel costs account for 45-50 per cent of operating costs.
“The primary reason for the losses is on account of a large share of expenses (almost 60-70 per cent) of the carriers being accounted for in dollars.
As a result, fuel and operating cost have increased at a fast pace,” Mr Ajay D'souza, Director, CRISIL Research, said.
06/06/12 Business Line

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Categories: Indian Aviation- In General Jun 2012