The Indian aviation industry is reporting a net loss of close to Rs 75-90 crore per day of the shutdown of operations – Rs. 5100-6100 crore loss over the period March 25, 2020 till May 31, 2020, according to a report of ICRA.
Domestic passenger traffic is expected to witness a de-growth of 41-46% in FY2021 with H1 FY2021. There will be a sharper de-growth followed by some recovery in H2 FY2021, as the airlines resume operations in a phased manner from June 2020. Further, the impact of the COVID-19 outbreak will last longer on international travel than domestic travel.
Thus, ICRA expects the FY2021 international passenger growth for Indian carriers to witness a significant Y-o-Y de-growth of 67-72%.
