Fuel, forex and conflict hit airlines: Domestic carriers’ profits may fall 15% this year

AI Summary

Indian airlines foresee a 10-15% decline in operating profits this fiscal year due to soaring fuel prices, airspace restrictions, a weakening rupee, and the impact of the Middle East conflict. Despite hopes for fuel cost moderation, higher expenses and lease rentals will continue to strain the sector.

Indian airlines anticipate a 10-15% drop in operating profits this fiscal year. Soaring aviation fuel prices, airspace limitations, and a weakening rupee, exacerbated by the Middle East conflict, are significantly impacting the sector. Despite potential fuel price moderation, higher costs and lease rentals will continue to pressure airline finances.