India's airlines may lose at least Rs 12,500 cr in FY13

The Centre for Asia-Pacific Aviation (CAPA) expects India's airline industry to lose more than $2.5 billion (Rs 12,500 crore) in the next fiscal year if oil prices touch $135 a barrel, its chief executive of South Asia said.

The industry consultancy expects $2.5 billion loss for the sector in the 2011-12 fiscal year that ends on March 31, Kapil Kaul said.

Troubled Kingfisher Airlines, which has a debt of about $1.3 billion, needs at least $500 million immediately to keep flying, according to CAPA.

The debt-ridden airline would need $800 million to return to full operations, Kaul said.