Airlines likely to post huge FY20 losses amid low fares, high costs

NEW DELHI : Indian carriers are likely to end this fiscal year through March with huge losses, hampered by their ability to raise fares even during the traditionally strong October-December quarter because of cut-throat competition, said three airline officials, requesting anonymity.

The collapse of Jet Airways (India) Ltd in April because of a severe cash crunch and a large debt pile has failed to lift industry fares as other airlines jumped to add capacity.

The over-eagerness resulted in other airlines adding capacity lost due to Jet’s grounding, forcing carriers to offer incentives to lure customers.