The second wave of COVID-19 in the country is expected to arrest the last six months’ recovery made by airlines, which could together log net losses of ₹9,500-10,000 crore this fiscal, credit rating agency Crisil said.
The rating agency, which analysed the top three airlines accounting for almost 78% of the total passenger traffic, said the losses this fiscal would, however, be 35-40% below the levels seen in fiscal 2021.
Domestic aviation was brought to a grinding halt between March 25 and May 25 last year during the nationwide lockdown.
Among the factors responsible for stalling aviation recovery were rising aviation turbine fuel prices and a resurgence of COVID-19 infections across the country, especially in Mumbai and Delhi, which account for 36% of the overall traffic.
Crisil cited the average daily domestic passenger air traffic that showed a 20% decline in April to almost 2.35 lakh daily trips, from the level seen in February 2021. Still, traffic in the full year could grow to 120-130% of fiscal 2021, it added.
