Airlines fail to gain from fuel price cut, may post $600 mn loss in FY20

Indian carriers are estimated to report a consolidated net loss of over $600 million (over Rs 4,230 crore) in 2019-20, according to aviation consultancy CAPA as it downgraded its full-year profitability projection made in June.

In June, it projected a consolidated net profit of $500-700 million in the optimistic case.

Currently, there are four budget carriers and two full service airlines — IndiGo, GoAir, SpiceJet, AirAsia India, Vistara and Air India.

In its quarterly market update report on aviation outlook FY2020, CAPA India said it is the “most significant downgrade within one quarter in more than 16 years”.

The carriers are anticipated to post a consolidated net loss of more than $600 million this financial year, as per projection at the end of November.