Thursday, January 30, 2020

Domestic airline industry may post net loss of Rs 7,800 crore: ICRA

New Delhi: The domestic airline industry is expected to post a net loss of aboutRs ?7,800 crore in fiscal 2020 as against an estimated net loss of approximately Rs10,000 crore in fiscal 2019, credit rating agency ICRA said.

“Excluding Air India, the rest of the industry is expected to report a net loss of aroundRs1,500 crore in fiscal year 2020 with a total debt of approximately Rs7,000 crore as on March 31, 2020. The industry’s prospects are expected to gradually improve, contingent on the movement in aviation turbine fuel prices,” said Kinjal Shah, Vice-President and Co-Head, Corporate Sector Ratings, ICRA.

Shah added, “Many of the industry players have weak balance sheet structure; and with continued losses in the near term, the industry will need approximately Rs20,000-22,500 crore equity infusion over the next three years.”

ICRA expects the domestic passenger traffic in fiscal year 2020 to be lower at 4.5 per cent, after five years of double-digit growth as many domestic airlines are focusing on expanding their international routes.
30/01/20 Business Line

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