Domestic Airline to face huge losses due to declining rupee

Around 50 per cent of the operational costs of most airlines, especially the low-cost carriers (LCCs), belong to aviation turbine fuel (ATF), imported and pegged to the dollar

Travel News
Travel News

With nearly 70 to 75 per cent of their operational costs tied to the dollar, most Indian air carriers say the September quarter could be the worst in recent times, in the wake of a sharp depreciation of the rupee, while competition and a non-peak travel season stopped them from raising fares.

Around 50 per cent of the operational costs of most airlines, especially the low-cost carriers (LCCs), belong to aviation turbine fuel (ATF), imported and pegged to the dollar.

Another 20 to 25 per cent of their operational costs belong to lease rentals for the planes, which have to be paid in dollars, and spare parts for maintenance, also imported.

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