Aviation outlook dull because of coronavirus outbreak

The outlook for India’s aviation industry remains “negative” in the wake of the coronavirus outbreak, which has resulted in many international passengers cancelling their travel to Southeast Asian countries, according to rating agency Icra.

Icra said the outbreak has impacted travel to and from China as well as other Southeast Asian countries.

“The suspension of flights on the India-China sector will not result in any significant impact on the financial performance of the airlines, unless the lockout is prolonged, as the traffic on these routes account for only 0.9-1.3 per cent of the total international passenger numbers,” Icra said on Thursday.

However, the agency said the impact is expected to be severe if passengers from other Southeast Asian countries, hit by coronavirus, cancel their travel.