Airlines affected after Rupee hit a record low of Rs 51.92 per dollar

There has been seen a fall in Rupee, domestic airlines are likely to revise all their targets, as 30% of expenses of airlines are denominated in dollars. Airlines such as Jet Airways, Spice Jet, Air India and Kingfisher airlines usually make their payments in dollars towards the rentals of their leased aircrafts, maintenance, foreign crew and pilots. Rupee can touch 54 by the end of this month; this has been predicted by some financial firms.

Airlines pay a rental of Rs 40 Lac for the single aircraft, which has now increased to Rs 50 Lac due to the decrease in value of a rupee. This has affected many things including parking, employee costs and navigation charges. The fall in rupee is definitely going to play a major role in this year’s losses in airlines industry. The losses have been estimated for this year, it would be Rs 10,000 crores which is more than double of last year’s losses which was 4,000 crores.