Trade News
Inbound/ Domestic News
Outbound News
Home Aviation Details


Friday, 31 January, 2020, 17 : 30 PM [IST]

Domestic airline industry may post net loss of INR 7,800 crore: ICRA

According to a report in The Hindu Business Line, the domestic airline industry is expected to post a net loss of about INR 7,800 crore in fiscal 2020 as against an estimated net loss of approximately INR 10,000 crore in fiscal 2019, credit rating agency ICRA said. “Excluding Air India, the rest of the industry is expected to report a net loss of around INR 1,500 crore in fiscal year 2020 with a total debt of approximately INR 7,000 crore as on March 31, 2020. 

The industry’s prospects are expected to gradually improve, contingent on the movement in aviation turbine fuel prices,” said Kinjal Shah, Vice-President and Co-Head, Corporate Sector Ratings, ICRA. Shah added, “Many of the industry players have weak balance sheet structure; and with continued losses in the near term, the industry will need approximately INR 20,000-22,500 crore equity infusion over the next three years.” 

ICRA expects the domestic passenger traffic in fiscal year 2020 to be lower at 4.5 per cent, after five years of double-digit growth as many domestic airlines are focusing on expanding their international routes. “Improvement in the core growth drivers like economic environment, tourism demand and regulatory support is essential for improved passenger traffic growth. Though there have been steps towards improving airport infrastructure, the pace of implementation remains a key concern,” ICRA said in a statement.  

Post Your commentsPOST YOUR COMMENT
* Name :      
* Email :    
  Website :  
Receive the best of Travel content in your mailbox.
Enter your e-mail ID for our
Weekly e-Newsletter
© Copyright 2015 Saffron Synergies Pvt Ltd