Indian aviation industry to lose Rs 25,000-26,000 crore this fiscal: ICRA

NEW DELHI: The Indian aviation industry is likely to lose of Rs 25,000-26,000 crore this fiscal and require additional funding of Rs 45,000-47,000 crore over the next three years, according to rating agency ICRA. The industry’s debt levels will increase to Rs 1.2 lakh crore (including lease liabilities) in FY2022. While domestic travel may reach pre-pandemic levels by FY 24, international will take longer to recover, ICRA says while maintaining its negative credit outlook on the Indian aviation industry.

However confident of long-term air traffic growth, rating agency CRISIL expects private airport operators to spend around Rs 42,000 crore on capacity expansion over the five years through fiscal 2026 — more than double the capital expenditure incurred in the last five fiscals.