India's major airline suffers crores in losses; ticket price hike may hit common people

NEW DELHI: IndiGo Airlines has played a major role in making air travel affordable for ordinary people. However, recent reports about the airline are not encouraging. The company’s losses have risen sharply, creating concern in the country’s aviation sector. During the period from July to September, IndiGo’s loss increased to Rs 2,582.1 crore.

The main setback came from the fall in the value of the rupee against the US dollar. Although the airline’s revenue rose by 9.3% to Rs 18,555 crore, it was unable to improve profitability. Global economic uncertainty and investor concerns have also affected the aviation market. The drop in crude oil prices did not bring much relief to the company. IndiGo had been the only profitable airline operating in the country until recently.

IndiGo became popular for offering domestic and international tickets at lower fares compared to other airlines. Passengers also appreciate that most of its flights reach their destinations on time, which has been one of IndiGo’s strong points. The airline is also known for launching special offers that provide tickets at surprisingly low prices.

During holiday seasons in the Gulf, when airfares usually rise sharply, IndiGo’s slightly lower fares had provided some relief to expatriate travellers. Now, with the company facing heavy losses, there are growing concerns that ticket prices may increase in the coming months.