Indian airlines set for $600-million loss in FY20, says CAPA report

CAPA estimates Air India to post a loss of $500 million this year, due to the grounding of over 20 aircraft

Indian airlines will post a combined loss of $600 million and induct fewer aircraft in the current financial year, aviation consultancy CAPA said in its latest report.

CAPA has revised its earnings estimate for Indian carriers from its June forecast of $500-700 million in profit, following weak results by market leader IndiGo and SpiceJet. 

The two carriers posted losses of Rs 1,062 crore and Rs 462 crore, respectively, in the September quarter.

Aggressive expansion, coupled with price wars, and an increase in maintenance costs, has also hit cash flows. “Most carriers except IndiGo continue to be precariously placed, with cash balances available, in