High Fuel Bills Amid Demand Boom Squeeze Indian Airlines

摘要

India’s airlines are traversing turbulent skies even though domestic passenger traffic is growing at the world’s fastest rate of nearly 20%. In July, internal air travel demand posted double-digit gains for the 47th consecutive month. But airlines have little leeway to raise fares amid fierce competition to maintain market share at a time when fuel costs have jumped 50% since last year. Clouds descending over the industry outlook are causing anxiety for shareholders. All three of the listed airlines — Interglobe Aviation, SpiceJet and Jet Airways — reported sharp erosion in profits during the April-June quarter, the second-consecutive period of financial downturn. InterGlobe Aviation owns India’s largest carrier IndiGo with over 40% market share. The company posted its largest-ever 97% year-on-year decline in net profits for the April-June quarter to 278 million rupees ($4 million).