Report: Airlines trim losses 30%, IndiGo logs record profit

Lower fuel prices have helped domestic carriers to trim their combined losses by an estimated 30 per cent at $1.21-1.27 billion in financial year 2015, while budget carrier IndiGo reported an estimated record $150-175-million profit during the period, according to a report.

The Indian airlines reported these losses despite an estimated combined net profit of $41-67 million reported by low-cost carriers, Sydney-based Centre for Asia Pacific Aviation (CAPA) said in its 2016 outlook.

According to CAPA, the combined estimated losses of three full-service carriers - Air India, Jet Airways, and new Vistara - stood at $1.28-1.31 billion during the period, with the government-owned Air India alone accounting for $900-920 million. According to CAPA, IndiGo is estimated to have posted a record profit of $150-175 million in financial year 2015, representing a net margin of eight to seven per cent. GoAir is the only other carrier understood to have been in profit, with an estimated profit of $14-15 million, close to its peak results posted in financial year 2013. This result was achieved on a record revenue of $450-475 million," CAPA said.

The rest of the sector is estimated to have lost around a combined $1.35 billion, of which $900-920 million was accounted for by Air India alone, it said.

India currently has nine airlines in the country.

Of these, Air India, Jet Airways and Vistara are full service carriers, while IndiGo, SpiceJet, GoAir and recent entrant AirAsia are budget airlines.

Vijayawada-based Air Costa and Air Pegasus, which commenced operations in May, are regional airlines.

Among other carriers, Jet Airways along with its subsidiary JetLite posted losses to the tune of USD 343 million in the previous fiscal, while SpiceJet estimated losses stood at USD 107 million during the period.

Besides, the new entrants -- AirAsia India, Vistara and Air Costa together reported estimated USD 50-60 million losses in the fiscal ended March 2015, CAPA said.