Indian airlines losses to shrink by $500-700 million in FY20: CAPA

Aviation consultancy CAPA estimates airline industrywide losses in India to reduce to $500-700 million in FY20 but forecasts slower domestic traffic growth as airlines focus on international routes.

For FY19, CAPA has projected domestic airlines to collectively post a loss of $1.7 billion. The airlines are expected to improve their financial performance in FY20 on the back of lower fuel costs and pricing discipline. CAPA released its India outlook at a summit in New Delhi on Tuesday. 

The consultancy expects industrywide loss between $500-700 million in FY20 with full-service airlines making a loss of $700-800 million and low-cost carriers making a profit