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IATA says it is hard for airlines to make money in India

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India's aviation industry is great in terms of growth but not in terms of making money, said Alexandre de Juniac, director general, International Airport Transport Association (IATA) on Tuesday to CNBC-TV18.

India's aviation industry is great in terms of growth but not in terms of making money, said Alexandre de Juniac, director general, International Airport Transport Association (IATA) on Tuesday to CNBC-TV18.
"India is a fantastic growing market. It has faced 50 months of uninterrupted double digit growth and we expect this growth to continue. So, the demand is there," Juniac said.
The head of the IATA, a grouping of more than 280 airlines, also said the steep rise in fuel prices and fall in the rupee value are putting "acute pressure on profits" of airlines.
"We have long made our case that applying GST to international tickets violates ICAO principles and India's international obligations," de Juniac said.
Further, he said these deviation from global standards may have a short-term revenue benefit for the government but it weakens India's competitiveness by raising the cost of connectivity.
The ICAO is a global aviation watchdog.
At present 5 percent and 12 percent Goods and Services Tax (GST) are levied on economy and business class air tickets, respectively.
While fuel accounts for about 24.2 percent of an average airline's cost structure, the IATA chief said that in India, it is 34 percent and pitched for regulating "transparency in pricing of jet fuel".
(With inputs from PTI)