As losses mount at Apac airlines, IndiGo, SpiceJet may fare better

The International Air Transport Association (IATA) has said Asia Pacific (Apac) airlines operating in the Apac region, including India, are expected to report combined losses of $31.7 billion in 2020. These losses are estimated to be lower in 2021 at $7.5 billion.

While a sharp reduction in losses is estimated, note that losses are still expected to remain high next year. With the idea of remote working having accelerated post the pandemic, the need for travel has reduced substantially, and analysts worry that some of the damage to the sector may linger for some time.

Even so, some analysts reckon Indian airlines may be slightly better off. “Some of the Indian airlines shouldn’t be incurring losses in FY22,” said an analyst requesting anonymity. Factors that could help the recovery include anticipated rebound in air traffic, sustained cost reduction efforts and a stable rupee.