Tag: #airlines

New Delhi, May 10 : With almost 60% of their cost in dollars, falling rupee against greenback is set to hit airlines that operate on wafer-thin margins. Weakening rupee is set to add to the woes of domestic carriers which have been reeling under high jetfuel prices. Speaking to UNI, a senior airline executive said that dollar related expenses of airlines comprise fuel, aircraft lease rentals, maintenance and part of distribution costs in case of full-service carriers. "Assuming that there is 10% depreciation in rupee, the airline's cost would increase by 6%. In recent past rupee has depreciated by about 3%. In the airline business, the profit margin is just 2-3% so the impact is significant," the executive elaborated. The Indian rupee hit historical low on Monday and touched 77.52 against the US Dollar before settling around 77.46 with the slide triggered by hike in interest rates by the US Federal Reserve