Domestic airlines expected to fly back into profitability next FY: CRISIL

Domestic airlines industry is expected to fly back into profitability next fiscal, for the first time since the outbreak of Covid, amid easing cost pressures and reduction in leverage to support credit profiles, a report said on Wednesday.

As per the report by credit rating agency Crisil, the industry is also likely to pare its net loss by as much as 75-80 per cent year-on-year to Rs 3,500-4,500 crore this fiscal, compared with around Rs 17,500 crore last fiscal.

Strong recovery in passenger traffic and easing cost pressures are supporting this turnaround in operating performance of airlines, Crisil said.

The projections are based on Crisil Ratings analysis of three airlines that account for around 75 per cent of domestic air traffic.