Air India, Jet, Spice may post Rs 7400cr loss in FY14

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26 Aug, 2025 12:21

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Between the three of them, leading carriers Air India, Jet Airways and SpiceJet are likely to post a combined loss in excess of USD 1.2 billion this financial year, or about Rs 7,400 crore (1 USD = Rs 62), a report by aviation consultancy CAPA has said.According to the CAPA India Aviation Outlook Report, Air India will likely post a full-year USD 700 million (or Rs 4,340 crore) loss while the two listed firms will together post a record USD 500 million (Rs 3100 crore) FY14 loss.Jet and SpiceJet have between them clocked losses of Rs 2,196 crore in the first three quarters for which financials are available.“GoAir is expected to end the year with a break‐even result or a modest profit, which is disappointing after a very promising first quarter. IndiGo will be the only carrier to report full year profitability but this too will be significantly lower than our earlier estimates,” the report said, adding that the latter, the only-consistently profitable airline in India, may look to list its shares in FY15.The industry’s total debt has risen to USD 12.6 billion (or Rs 76,800 crore), the report said, though 94 percent of the burden lies with the three full-service carriers, Air India, Jet and grounded Kingfisher.CAPA said that apart from the Tata-AirAsia airline, which is set to take off operations in India, two-three start-ups are also reportedly awaiting licenses to fly, and this would pressure yields and “risks would peak for some carriers in FY2015”. “Continued red ink may start to test the holding power of a couple of airlines,” it warned.“Whenever a new entrant comes in -- whatever people see about branding or service -- it is invariably a price-led strategy. The rest of the industry will have to reduce its prices further and it is going to be a lot more pain,” SL Narayanan, CFO of the Sun Group, which operates SpiceJet had said in an interview with CNBC-TV18 Tuesday. He added that Spice’s focus was to “staying healthy and surviving”.