Cash-strapped domestic airlines could see their margins eroding with the rupee weakening by 11% against the dollar since the beginning of August. 

Indian carriers will take a hit of at least 6% in profitability as dollar-linked expenses, such as lease rentals, maintenance and expat salaries, would cost more now in rupee terms, say industry heads and experts. This burden comes at a time when most carriers are already incurring losses as per a report in Financial Express.

Low-cost airlines, such as IndiGo, SpiceJet and GoAir, which serve nearly half of the 50 million annual domestic traffic, have one-third of their quarterly cash outgo in foreign currency.