New Delhi: Indian aviation industry is losing Rs 75-90 crore everyday during the lockdown and could suffer a loss of Rs 5,100-6,100 crore from March 25 to May 31, 2020, rating agency ICRA said on Thursday.
Analytics company Crisil also estimates the industry is staring at a loss of Rs 24,000-25,000 crore this fiscal. Airlines will be the worst hit with losses of Rs 17,000 crore, followed by airport operators at Rs 5,000-5,500 crore and airport retailers (including retail, food and beverages and duty free) at Rs 1,700-1,800 crore.
According to ICRA, domestic passenger traffic could fall by 41% to 46% this fiscal as compared to FY 2020, with H1 FY2021 (April-September) witnessing a sharper fall and some recovery in H2 (October-March) as airlines resume operations in a phased manner from June 2020.
Covid will cast a darker and longer shadow on international travel. Indian carriers could carry 67-72% less international travellers this fiscal than FY 2020, says ICRA.
Since March 25, 2020, both domestic and international schedule passenger operations have been stopped and airlines are operating only a few all-cargo flights.
ICRA vice-president Kinjal Shah says even when schedule operations resume, many passengers who booked flights cancelled during the lockdown will be travelling and airlines’ cash flow “may not bring any significant additional cash inflows to airlines.”
Crisil’s Jagannarayan Padmanabhan said the estimated loss figures are preliminary and could rise if the lockdown is extended. “As and when operations resume, overall operational capacity will hover at 50-60% for the rest of the fiscal. Consequently, mergers and acquisitions of airlines, and relook at expansion plans of private and upcoming greenfield airports is possible,” he said.
07/05/20 Saurabh Sinha/Times of India
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Analytics company Crisil also estimates the industry is staring at a loss of Rs 24,000-25,000 crore this fiscal. Airlines will be the worst hit with losses of Rs 17,000 crore, followed by airport operators at Rs 5,000-5,500 crore and airport retailers (including retail, food and beverages and duty free) at Rs 1,700-1,800 crore.
According to ICRA, domestic passenger traffic could fall by 41% to 46% this fiscal as compared to FY 2020, with H1 FY2021 (April-September) witnessing a sharper fall and some recovery in H2 (October-March) as airlines resume operations in a phased manner from June 2020.
Covid will cast a darker and longer shadow on international travel. Indian carriers could carry 67-72% less international travellers this fiscal than FY 2020, says ICRA.
Since March 25, 2020, both domestic and international schedule passenger operations have been stopped and airlines are operating only a few all-cargo flights.
ICRA vice-president Kinjal Shah says even when schedule operations resume, many passengers who booked flights cancelled during the lockdown will be travelling and airlines’ cash flow “may not bring any significant additional cash inflows to airlines.”
Crisil’s Jagannarayan Padmanabhan said the estimated loss figures are preliminary and could rise if the lockdown is extended. “As and when operations resume, overall operational capacity will hover at 50-60% for the rest of the fiscal. Consequently, mergers and acquisitions of airlines, and relook at expansion plans of private and upcoming greenfield airports is possible,” he said.
07/05/20 Saurabh Sinha/Times of India
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