The net loss for India’s domestic airline industry is expected to be in the range of Rs 15,000-17,000 crore this fiscal.
According to a report by credit ratings agency Icra, this projected loss is a function of elevated price of Aviation Turbine Fuel (ATF) and a weak rupee.
In India, ATF accounts for around 45 per cent of the operational cost of an airline. Besides, 35-50 per cent of an airlines’ operating expenses are US dollar-driven, which means a weak rupee makes a significant impact.
