The high cost of fuel is resulting in falling fortunes of airlines across the globe. Last month, Canada’s WestJet reported its first quarterly loss in 13, as it struggled with a 38 percent rise in fuel costs; US-based Delta Air Lines expects its current fuel bill to be higher by $2 billion.
Back home, IndiGo saw profit fall by 97 percent to ₹27.8 crore in the first quarter of fiscal 2018 as against ₹811 crore last year. Jet Airways, which celebrated its 25th year, is reported to be struggling to stay afloat as its finances are in the doldrums.
Despite double-digit growth, India’s aviation industry is facing challenges: A depreciating rupee on one hand, and the mismatch between high fuel prices and low fares on the other. Adding to this are the structural challenges of the industry.
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(This story appears in the 31 August, 2018 issue of Forbes India. To visit our Archives, click here.)