GoAir

GoAir retains the tag of being a profitable airline even though its profits have plummeted by 95% as compared with the last fiscal. What was a resounding profit of 104 cr is 2013 is only left at meagre 5.44 cr this year. This drop in profits has been despite increase in operating revenue by 26.7% to 2435 cr this fiscal. But, this increase could not be translated into more profits due to two major reasons of depreciating currency and rise in fuel costs. Such has been the impact of these two factors that all profits have literally been eaten away.

As per the Indian Government rules, GoAir is not allowed to operate to international destination, which takes away it ability to hedge against the currency fluctuations.

With growth in revenues, the carrier can expect to improve upon its profits in the year ahead when the external factors become more favourable. Airline is adding to its capacity, working towards improvement of load factors and improving its marketing efforts.