Airlines gain altitude, but will fly into losses this fiscal, too

Domestic airlines are expected to log net losses in FY22 on the back of lower domestic air traffic compared with pre-pandemic levels, together with high fuel prices, ratings agency Crisil said.

However, the agency said that these net losses will be 35-40 per cent below the ones reported for fiscal 2021 mark at Rs 9,500- Rs 10,000 crore.

A Crisil Ratings study of the top three airlines, which account for 78 per cent of total passenger traffic, noted: “A resurgence of Covid-19 infections across the country — especially in Mumbai and Delhi, which account for 36 per cent of overall air traffic – is expected to stall the recovery seen over the past six months.”