Airlines face difficulty in operating at full capacity amid low demand
Even as the government lifted the cap on capacity deployment, most airlines are finding it difficult to operate at full capacity due to less demand, according to a report in Mint.
The aviation sector in India has faced several hurdles since 2020. First, the pandemic-induced lockdowns forced planes to be grounded for two months. Then, the slump in demand for travel surfaced. Cap on capacity deployment and high aviation turbine fuel prices following the Russia-Ukraine war followed.
From May 2020 to October 2021, Centre placed a cap on capacity deployment by airlines. This was in the range of 33 per cent to 85 per cent. With the excess capacity that could not be deployed, the airlines found it increasingly difficult to generate enough revenue.
