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Turbulent Skies: Airlines In India May Face 4.1 Billion Dollar Loss This Fiscal Year
Writer: Madhusree Goswami
A mountain girl trying to make it big in the city. She loves to travel and explore and hence keen on doing on-ground stories. Giving the crux of the matter through her editing skills is her way to pay back the journalism its due credit.
India, 4 Jun 2021 2:47 PM GMT
Editor : Ankita Singh |
A literature lover who likes delving deeper into a wide range of societal issues and expresses her opinions about the same. Keeps looking for best-read recommendations while enjoying her coffee and tea.
Creatives : Madhusree Goswami
A mountain girl trying to make it big in the city. She loves to travel and explore and hence keen on doing on-ground stories. Giving the crux of the matter through her editing skills is her way to pay back the journalism its due credit.
The second wave has severely affected the air travel industry. There was a substantial decrease in passenger traffic in April and May owing to the spike in COVID infections.
The biggest sector to have been hit hard by the coronavirus pandemic has perhaps been the aviation sector. In India, the trouble began brewing much ahead of the pandemic when Jet Airways suspended its services in 2019. The pandemic struck a blow to the sector.
Aviation consultancy and research firm CAPA said that Indian airlines are expected to post a consolidated loss of $4.1 billion this fiscal. It is similar to what they are estimated to have incurred in 2020-21, taking the total losses of two years to around $8 billion as a result of COVID so far, reported Times of India.
IndiGo, which is the country's largest airline, and Air India Ltd. will account for $4.5 billion of losses, CAPA Centre for Aviation said in its report India Airline Outlook for the fiscal year 2022, reported Bloomberg.
The firm said Indian carriers will need about $5 billion to survive but have access to only about $1.1 billion funds through initial public offerings, sale of new shares and other instruments.
The second wave has severely affected the air travel industry. There was a substantial decrease in passenger traffic in April and May owing to the spike in COVID infections. CAPA is expecting domestic traffic to drop to 80 million passengers from 140 million in 2020. It expects a moderate recovery in June.
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