The domestic airlines industry is estimated to have posted losses to the tune of over Rs 10,000 crore (Rs 100 billion) in the previous fiscal, nearly 18 per cent down from a year ago, according to a report.
"Capa estimated India's airlines industry posted a combined loss of Rs 105 billion in the FY13, down from the approximately Rs 127 billion the previous year," aviation think-tank Centre for Asia Pacific Aviation (Capa) airlines IT services provider SITA said in a report.
The report was released during the day-long Aviation ICT Forum 2013. Observing that more than 40 per cent of these losses were incurred in the last quarter of 2012-13 fiscal alone, the report said, "This squandered the improved performance of the earlier three quarters."
The total industry turnover increased by 8.9 per cent to Rs 54,000 crore (Rs 540 billion) in FY2012-13, the report said, adding: "The revenues from international operations increased by 4.1 per cent during the year."
Terming the grounding of Kingfisher airlines as one of the most significant development for the industry in FY2012-13, which highlighted the challenging environment, the report said: "The cost environment remained hostile throughout the year with the weakness of the Indian rupee and continued high oil prices being the key challenges."
Even though Brent crude levels softened towards the end of the year, the depreciation of the rupee meant that carriers' fuel prices in India continued to rise, the report said.