Indian airlines will need fund infusions of ₹35,000 crore till the end of FY23 to stay afloat, credit rating agency Icra said, as lower revenue and higher fixed costs erode their profitability.
The ongoing lockdown to contain the covid-19 pandemic is expected to lead to a 44% decline in revenue during 2020-21 from a year ago, the rating company said in a statement. The industry’s net debt is expected to rise to about ₹46,500 crore by 2021-22.
“Overall, the industry will witness about 41-46% degrowth in domestic passenger traffic and about 67-72% degrowth in international passenger traffic for the Indian carriers in FY2021,” it said.
