Monday, September 03, 2018

Domestic airlines may post higher losses at $1.90bn: CAPA

Mumbai: The domestic airlines industry is expected to post higher losses at $1.65-1.90 billion this fiscal year, up from projected $430-460 million, amid the headwinds due higher costs and lower yields, a report said.

Besides, airlines need to raise over $3 billion in the near-term based on the June quarter estimates, with full service carriers requiring around $2.6 billion and the low-cost peers needing $400 million, the India unit of Sydney-based Centre for Asia Pacific Aviation (CAPA) said on Monday in its Mid-Year Aviation Outlook 2019.

Full-service carriers are critically placed and could lose $1.75-2 billion in the current fiscal largely because of their uncompetitive cost base on domestic operations and a lack of profitability on international routes, it said.

Government-owned Air India, Jet Airways and Vistara are the three full-service domestic airlines.
03/09/18 PTI/Business Line