MUMBAI: Domestic airlines, excluding IndiGo, may require funding requirements to the tune of $3-3.5 billion, with travel demand likely to remain subdued until the September quarter and no certainty of revival in the second half, aviation consultancy CAPA said in a report on Friday.
The Centre for Asia Pacific Aviation (CAPA) had in late April said that Indian airlines, excluding IndiGo, will need to raise a minimum of $2.5 billion to survive the temporary grounding of the operations due to the lockdown imposed to contain COVID-19 spread.
Stating that the demand-related risks are much higher than its earlier estimates, CAPA said the outlook remains “soft” as the recent traffic (after the resumption of domestic services from May 25) mostly comprised those passengers that were stuck in the “wrong” place at the time of imposition of lockdown on March 25, and started returning to their home base.
“Our earlier funding estimate proved to be conservative. Revised requirements are now likely to be in the range of $3-3.5 billion,” CAPA said in the report.
