Domestic commercial airlines piled up loss of $1.65 billion (Rs 8,910 crore) on a revenue of $9.5 billion ( Rs 51,300 crore) during 2012-13 with more than 40 per cent of the annual loss coming from operations in the last quarter (January-March), according to the Centre for Asia Pacific Aviation (Capa).
The aviation think tank in its India Aviation Outlook 2013-14 report further stated that average fares increased by 15-20 per cent year-on-year in the last fiscal and aggressive discounting during the traditionally weak period between January and March resulted in loss of $700 million during the last quarter alone.
"The fare levels in the current fiscal are expected to be softer than in 2012-13, and there is no significant easing around the corner in terms of costs. Fuel, the largest input cost, is expected to remain high," said Capa. Capa's profitability outlook for 2013-14 has projected that Air India would end up losing $750-$800 million (Rs 4,050-Rs 4,320 crore) during the year.
29/05/13 Business Today
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The aviation think tank in its India Aviation Outlook 2013-14 report further stated that average fares increased by 15-20 per cent year-on-year in the last fiscal and aggressive discounting during the traditionally weak period between January and March resulted in loss of $700 million during the last quarter alone.
"The fare levels in the current fiscal are expected to be softer than in 2012-13, and there is no significant easing around the corner in terms of costs. Fuel, the largest input cost, is expected to remain high," said Capa. Capa's profitability outlook for 2013-14 has projected that Air India would end up losing $750-$800 million (Rs 4,050-Rs 4,320 crore) during the year.
29/05/13 Business Today
