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Vistara’s financial woes continue
Business

Vistara’s financial woes continue

Agency News

After a huge rise in the price of aviation turbine fuel, Vistara airlines, a joint venture between Tatas and Singapore Airlines, is struggling with huge financial woes. According to the Tata Sons' latest annual report, Vistara's losses have gone up to 93 per cent at Rs 831 crore in 2018-19.

Vistara’s plight is almost similar to other airlines such as IndiGo and SpiceJet which have reported a dismal numbers for FY19. The 23 price rise of Aviation turbine fuel in FY 2019 has taken the wind out of Vistara’s sail. Moreover, the rupee depreciation over 8 per cent against the US dollar also increased the operating costs of the carrier.

The intensely competitive environment and rapid capacity expansion by most airlines made the matters worse. SpiceJet reported a net loss of Rs 316.1 crore  in standalone terms in FY19, while Indigo reported a sharp decline of 93 per cent in its standalone net profit at Rs 156.10 crore.