INDUSTRY
Despite flying high, Indian airlines’ losses set to widen to $600 mn in FY15
- IBJ Bureau
- Jun 06, 2024
Domestic airlines are likely to widen losses to between $400 million and $600 million in FY25 despite a likely rise in traffic, aviation consulting agency CAPA India Chief Executive Officer Kapil Kaul has said.
In FY24, the Indian aviation sector’s estimated losses stood at around $400 million, supported by market leader IndiGo’s record profit. The number excludes those of cash-strapped SpiceJet, which is yet to declare results for the last two quarters.
InterGlobe Aviation, which operates IndiGo, had reported a profit of Rs 1,894.8 crore for the January- March period of FY24, the sixth straight quarter of gains.
The aviation industry is on the road to recovery as the domestic traffic and cargo volumes have reached pre-COVID levels in the previous year, Mr Kaul points out.
The domestic traffic is likely to grow at 6 to 8 per cent in FY25 over that of the previous year and international traffic at 9 to 11 per cent. Domestic fares had risen by 1.3 per cent in FY24 from those of the previous year and were 34 per cent higher compared to the fares in FY20, Mr Kaul has noted, while speaking at the CAPA India Aviation Summit.
Airline costs, however, are expected to rise by 3.8 per cent in FY25.
India’s airlines are expected to add 84 aircraft this year, taking the fleet count to 812 by the end of FY25 from 728 in the previous year. The fleet size will double by 2030, he adds.
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