Indian airlines face a profit drop this financial year. Higher fuel prices, airspace limits, and a weaker rupee are increasing costs. Fleet expansion will also raise lease payments. While conflict resolution could ease fuel expenses, airlines will...
Domestic airlines' operating profit is expected to fall this fiscal as elevated aviation turbine fuel (ATF) prices, airspace restrictions and rupee depreciation amid the West Asia conflict increase operating costs, according to CRISIL Ratings.
While lower ATF prices driven by a resolution of the conflict could contain further escalation in fuel costs, ongoing fleet expansion will push up lease rentals, putting pressure on lease serviceability through internal accruals.
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