India: Domestic airlines may post higher losses at US$1.65b-$1.90b:CAPA
The domestic airlines industry is expected to post higher losses at US$1.65b-$1.90b this fiscal year, up from projected $430-$460m, amid the headwinds due higher costs and lower yields, a report said. Besides, airlines need to raise over $3b in near-term based on June quarter estimates, with full service carriers requiring around $2.6b, while the low-cost peers needing $400m, the India unit of CAPA said Monday in its Mid-Year Aviation Outlook 2019. Full service carriers are critically placed and could lose $1.75-2b in the current fiscal largely because of their uncompetitive cost base on domestic operations and a lack of profitability on international routes, it said. Traffic growth continues unabated but the financial outlook has deteriorated dramatically since January, the report said. <br/>
https://portal.staralliance.com/cms/news/hot-topics/2018-09-04/general/india-domestic-airlines-may-post-higher-losses-at-us-1-65b-1-90b-capa
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India: Domestic airlines may post higher losses at US$1.65b-$1.90b:CAPA
The domestic airlines industry is expected to post higher losses at US$1.65b-$1.90b this fiscal year, up from projected $430-$460m, amid the headwinds due higher costs and lower yields, a report said. Besides, airlines need to raise over $3b in near-term based on June quarter estimates, with full service carriers requiring around $2.6b, while the low-cost peers needing $400m, the India unit of CAPA said Monday in its Mid-Year Aviation Outlook 2019. Full service carriers are critically placed and could lose $1.75-2b in the current fiscal largely because of their uncompetitive cost base on domestic operations and a lack of profitability on international routes, it said. Traffic growth continues unabated but the financial outlook has deteriorated dramatically since January, the report said. <br/>
