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Back to square one: Airlines seen posting Q2 losses on rising costs. Beginning of a long descent?

Back to square one: Airlines seen posting Q2 losses on rising costs. Beginning of a long descent?
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Synopsis

Most analysts expect IndiGo, SpiceJet, and their unlisted rivals to report losses in the second quarter. While soaring costs have eclipsed a smart rebound in passenger traffic to pre-Covid-19 levels, India’s airlines are facing heavy headwinds including competition from rail and road.

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7 mins read, Last Updated:
In August this year, when IndiGo reported a record profit for the first quarter of FY24, CEO Pieter Elbers attributed it to the momentum carried forward from the second half of the previous fiscal. “If you would recall, last year we had a distinct period of two halves,” he told analysts, blaming high fuel prices and rupee depreciation for the INR2,600 crore loss in the first half of FY23. He went on to credit the INR2,300 crore profit in H2FY23

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