Domestic airline industry may report up to Rs 17k-cr loss in FY23: Report

Domestic airlines industry is expected to report a net loss of around Rs 15,000-17,000 crore this fiscal on account of elevated price of Aviation Turbine Fuel (ATF) and a weak rupee, a report said on Wednesday.

The losses for the industry in the previous fiscal were estimated at around Rs 23,000 crore, credit ratings agency Icra said in its report.

However, the debt levels for the industry are expected to be at around Rs 1 lakh crore (including lease liabilities) as on March 31, 2023, as per the ratings agency.

Any positive or negative movement in rupee against the US dollar and any increase or decrease in the jet fuel prices have a major bearing on the cost structure of airlines as in India, ATF accounts for around 45 per cent of the operational cost of an airline while as much as 35-50 per cent of the airlines' operating expenses are US dollar driven.

Two listed airlines -- IndiGo and SpiceJet -- have reported losses to the tune of Rs 1,064 crore and Rs 789 crore, respectively, i