Domestic aviation industry may see around 57% revenue growth in FY22: Icra

With around 57 per cent growth expected in revenue in FY22 on the back of a likely higher passenger traffic, the domestic aviation industry’s net losses may reduce to Rs 14,600 crore from an estimated a net loss of Rs 21,000 crore this fiscal, ratings agency Icra said on Monday.

However, the ratings agency has maintained its ‘negative’ credit outlook on the Indian aviation industry. It expects debt levels to remain high in 2020-21 and 2021-22, and the industry may require a capital infusion of Rs 35,000 crore-37,000 crore between 2020-21 and 2022-23.

“With an improvement in passenger traffic in 2021-22, Icra expects the Indian aviation industry to report a year-on-year growth of around per cent 57 in revenues, with the industry’s net loss reducing to Rs 146 billion (Rs 14,600 crore) from an estimated net loss of Rs 210 billion (21,000 crore) in 2020-21,” said Icra Vice-President Kinjal Shah.