The April-June quarter of FY21 (Q1FY21) brought mixed cues for the aviation sector. While airlines such as IndiGo and SpiceJet were allowed to resume operation from the last week of May, albeit with capped fares, air traffic remained thin amid fears of Covid-19 outbreak and the varied quarantine rules in different states. Yet, decline in aviation turbine fuel (ATF) prices, mark to market (MTM) gains on appreciating rupee, and continued cargo operation may trim losses to some extent, analysts say.
“With domestic air travel resuming only from May 25th at 1/3rd of approved 2020 summer schedule, we expect Q1 performance to be adversely impacted due to loss of peak summer travel days; truncated size of operations; little to no ancillary revenues (except for cargo operations);
