Thursday, May 07, 2020

'Indian aviation industry could face Rs 24k crore revenue loss due to Covid-19 lockdown'

Mumbai: Due to the extended lockdown to contain COVID-19 pandemic, the Indian aviation industry will "crash-land" this fiscal with revenue loss of Rs 24,000 crore to 25,000 crore, predicted global analytics company CRISIL in a report released on Thursday. The losses will go up if travel restrictions last longer in hubs like Mumbai, Delhi, Chennai and Kolkata, the company said.
Airline flights have been suspended since March 24, with only cargo flights and repatriation flights currently being operated.
"Airlines will be the worst-affected, contributing more than 70% of the losses, or about 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," said CRISIL.
That would reverse the trend growth of about 11% per annum the industry has logged over the past ten years, making it one of the most adversely affected sectors of the economy. "We expect the aviation sector will take at least 6-8 quarters to reach pre-pandemic levels," it said
07/05/20 Manju V/Times of India
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