Indian airlines are expected to end the financial year 2024 on a much better note with significant decline in losses compared to the previous one, predicts Investment Information and Credit Rating Agency (ICRA). The Indian operators’ losses will reduce by around $600-840 million in FY2024, ICRA claims.
Indian passenger demand post-pandemic has been revolutionary and led to India becoming one of the fastest recovering domestic markets in the world.
“Still, global crises, including the war in Ukraine and the following rise in fuel prices, played a role in the sector’s financial health last year when its cumulative loss was estimated to be between $1.3 to 1.5 billion,” ICRA said in a statement. “The net loss is expected to reduce further to Rs 5,000-7,000 crore in 2023-24 as airlines continue to witness healthy passenger traffic growth and improve their RASK-CASK spread through better pricing discipline”
ICRA has highlighted that aviation fuel prices were $1,155 per kilo liter in the first five months this year compared with $1458 in the previous financial year. But the steady fall in rupee value as compared to dollar led to problems for Indian operators while repaying debts in foreign currency.