Mumbai: The Indian civil aviation sector continued to suffer from losses in 2014-15 with the airline industry estimated to have borne a loss of over Rs.7,000 crore, despite 35 per cent reduction in jet fuel cost during the year.
Had there been no respite from high jet fuel price, the industry could have sunk in the red. The significant drop in jet fuel prices enabled the industry to minimise its losses as compared to the previous year. Stringent cost cutting measures though helped in reducing losses.
Jet Airways reduced its net loss to Rs.2,097 crore from a net loss of Rs.4,130 crore in 2013-14. SpiceJet narrowed its loss to Rs.687 crore from a net loss of Rs.1,003 crore a year ago. The losses could have been more had SpiceJet continued its full operations and not benefitted from onetime gain of Rs.61 crore from an aircraft insurance claim.
Air India is expected to report a loss of Rs.4,300 crore for 2014-15 compared to a loss of around Rs.5,000 crore in the previous year. IndiGo, though yet to announce the result for 2014-15, is expected to report a profit. In 2013-14, the airline had reported a profit of Rs.317 crore.
06/06/15 Lalatendu Mishra/The Hindu
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Had there been no respite from high jet fuel price, the industry could have sunk in the red. The significant drop in jet fuel prices enabled the industry to minimise its losses as compared to the previous year. Stringent cost cutting measures though helped in reducing losses.
Jet Airways reduced its net loss to Rs.2,097 crore from a net loss of Rs.4,130 crore in 2013-14. SpiceJet narrowed its loss to Rs.687 crore from a net loss of Rs.1,003 crore a year ago. The losses could have been more had SpiceJet continued its full operations and not benefitted from onetime gain of Rs.61 crore from an aircraft insurance claim.
Air India is expected to report a loss of Rs.4,300 crore for 2014-15 compared to a loss of around Rs.5,000 crore in the previous year. IndiGo, though yet to announce the result for 2014-15, is expected to report a profit. In 2013-14, the airline had reported a profit of Rs.317 crore.
06/06/15 Lalatendu Mishra/The Hindu
