Airline fuel prices volatility impacting the profitability in India

Abstract

Purpose: The purpose of the research is to understand if there is any impact of air-fuel prices on the profitability of airlines in India.

Design/methodology/approach: A review of literature has been conducted on various related articles to understand the gap. After analysing the gap, we collected secondary data from screener.com and annual reports of the airline companies and generated correlation and regression analysis on excel.

Findings:The research analysis has helped us determine that there is certainly an impact of air fuel prices on the profitability of the airline industry through correlation and regression calculations. The impact is evident but not to a greater extent that it majorly affects the profitability of the airline companies. It is understood that several other factors affect the profitability and air fuel prices in one among the factors.

Originality/value: To the best of authors knowledge, as there was data on air  fuel prices on foreign airlines but not much on Indian airline companies. This study is unique as the study considers the past five financial years' data to study the impact of air-fuel prices on profitability of Indian Airline companies.