MUMBAI: With healthy passenger traffic growth and airline maintain price discipline, the Indian airline industry is expected to massively cut its net loss to Rs. 30-40 billion in FY2024 and FY2025, according to a recent report released by credit rating agency ICRA. The industry had reported a net loss of about Rs. 170-175 billion in FY2023 due to elevated ATF prices coupled with the depreciation of the Indian rupee against the US dollar. But the pace of recovery in earnings is likely to be gradual owing to the high fixed-cost nature of the business, it added.
A prime factor is supply chain challenges and engine failure issues that impact the industry’s capacity. Like airlines the world over, the Indian aviation industry too has been facing supply chain challenges and issues of engine failures for the Pratt and Whitney (P&W) engines supplied to various airlines. “In FY2024, Go Airlines (India) Limited grounded half of its fleet due to faulty P&W engines, which led to the stalling…
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