Airlines not in a position to increase capacity to 45%

New Delhi: Indian airlines are unlikely to scale up their domestic capacity anytime soon to match the 45% cap set by the government, as they continue to be bogged down by sluggish demand, various restrictions, reduced slots at airports, and tough quarantine and lockdown rules imposed by states.

“It’s hard for airlines to increase their capacity to 45% in the near future, as most airlines are currently operating at 20%-25% of their capacity amidst muted passenger demand due to the ongoing pandemic,” said a senior airline official, requesting anonymity.

Indian airlines resumed domestic operations from 25 May, after being grounded for two months during a nationwide lockdown to contain the covid-19 pandemic. The government, however, set a 33% cap on the capacity while allowing them to restart operations, which was increased to 45% during June.