The Indian aviation industry is expected to report a net loss of Rs 21,000 crore in the current financial year (FY21) against a net loss of Rs 12,700 crore in FY20 due to lower revenues and high fixed costs, according to ICRA.
The industry’s debt level will increase to Rs 50,000 crore (excluding lease liabilities) over FY 2021-22 and the industry will require an additional funding of Rs 35,000 crore to 37,000 crore over FY21 to 23.
While some airlines have sufficient liquidity and financial support from a strong parentage which will help them sustain over the near term, there are other airlines which are already in financial stress and are now facing several issues.
Besides, said ICRA, even for the former, credit metrics and liquidity profile have deteriorated.
