Listed aviation players, InterGlobe Aviation (IndiGo) and SpiceJet, are expected to narrow their losses sequentially in the September quarter of FY21 (Q2FY21), as India gradually opened up its skies and unlocked the economy. Besides, mild appreciation of rupee during the quarter would aid non-fuel costs, say analysts.
According to industry reports, the early part of Q2 witnessed localised lockdowns, slot restrictions at major airports, and low consumer confidence due to rising incidence of Covid-19 cases. However, during the latter half, industry operated at 43-45 per cent of pre-Covid capacity in the month of September, which is twice the capacity seen in June.
In this backdrop, analysts at Prabhudas Lilladher believe IndiGo and SpiceJet could have operated at 34 per cent and 36.4 per cent of Q2FY20 capacity, respectively.
