Mumbai: The airline industry in India will continue to incur losses, with four out of the five airlines e expected to report annual loss, as business environment continues to remain challenging.
The entry of new airlines during this year will make it more difficult for the incumbent airlines, whose finances have weakened further, said aviation consultancy Centre for Asia Pacific Aviation (CAPA) in a report.
As per CAPA, all airlines from India collectively lost over $500 million in the September, 2013, quarter. And despite the strong December quarter, the airlines are expected to report collective loss of $175-250 million, excluding one-off adjustments.
“In financial year 2013, Indian carriers lost an average of Rs. 1,500 ($24.40) on every passenger carried. And this is even before the entry of several planned start-ups in 2014. Every carrier is expected to post losses in the current fourth quarter based on current trends and a fare war is not ruled out, which will likely result in Jet Airways and SpiceJet reporting record full year losses,” CAPA said .
The report also said that Jet is expected to burn almost the entire capital generated from the sale of 24 per cent stake to Etihad.
18/01/14 Lalatendu Mishra/The Hindu
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The entry of new airlines during this year will make it more difficult for the incumbent airlines, whose finances have weakened further, said aviation consultancy Centre for Asia Pacific Aviation (CAPA) in a report.
As per CAPA, all airlines from India collectively lost over $500 million in the September, 2013, quarter. And despite the strong December quarter, the airlines are expected to report collective loss of $175-250 million, excluding one-off adjustments.
“In financial year 2013, Indian carriers lost an average of Rs. 1,500 ($24.40) on every passenger carried. And this is even before the entry of several planned start-ups in 2014. Every carrier is expected to post losses in the current fourth quarter based on current trends and a fare war is not ruled out, which will likely result in Jet Airways and SpiceJet reporting record full year losses,” CAPA said .
The report also said that Jet is expected to burn almost the entire capital generated from the sale of 24 per cent stake to Etihad.
18/01/14 Lalatendu Mishra/The Hindu
