NEW DELHI: A sharp fall in passenger traffic across airports since late March and no signs of major improvement in coming days is likely to result in moderation of private airport operator’s credit profile and liquidity position, credit rating agency ICRA noted.
Passenger traffic is estimated to decline by 45-50 per cent in FY21. The agency said that given likelihood of weak traffic for a prolonged period and resultant operations conducted at sub-optimal capacities and at the same time necessity to invest in infrastructure to ensure passenger safety and meet preventive requirements against the pandemic, the airports’ profitability and cashflows are likely to remain under pressure in the near term. This risk is further exacerbated in case of the privatised airports, as most of them are in the midst of undertaking sizeable debt funded capex to expand capacities.
