The weak liquidity position of some Indian airlines is likely to force them to curtail operations and allow stronger rivals to enhance their presence in the domestic aviation sector, Fitch Ratings said on Wednesday.
A higher market share, apart from cost-cutting measures, will allow airlines such as market leader IndiGo to improve their performance after a sharp drop in earnings in the second quarter of 2020 even though overall travel demand is unlikely to rebound quickly.
IndiGo is well placed to consolidate its market position in the coming months because of the liquidity pressure at rival airlines. Its share of domestic passengers has already risen to 60 per cent by July-end of 2020 from 48 per cent in the first quarter of 2020.
