Friday, May 08, 2020

Aviation flies towards Rs 25,000 Cr revenue loss, which would spur changes: Report

New Delhi: The extended lockdown to contain the COVID-19 pandemic, which has stalled traffic on the ground as in the air, is expected to heap enormous losses on infrastructure industries in both sectors, Crisil has said in a report.

According to the report by Crisil Infrastructure Advisory, aviation industry will crash-land this fiscal with revenue loss of Rs 24,000-25,000 crore.
Airlines will be the worst-affected, contributing more than 70% of the losses, or Rs 17,000 crore, followed by airport operators with Rs 5,000-5,500 crore, and airport retailers (including retail, food and beverages and duty-free) with Rs 1,700-1,800 crore, the infra advisory services of global analytics form said.

The losses would reverse the trend growth of 11% per annum the industry has logged over the past ten years, making it one of the most adversely affected s ectors of the economy.

What's worse, Crisil said, the losses will climb if travel restrictions last longer in hubs such as Mumbai, Delhi, Chennai and Kolkata. " We expect the aviation sector will take at least 6-8 quarters to reach pre-pandemic levels," it said.
08/05/20 IANS/Times of India
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