The country’s aviation industry declined 66 per cent in September, according to investment information agency ICRA. However, on a sequential basis (compared to the previous month), it grew 37 per cent to 39 lakh passengers in September, indicating a recovery. Capacity deployment in September was 46 per cent compared to the corresponding period last year, a significant increase compared to 33 per cent in August, according to ICRA.
ICRA said it has a negative credit outlook on the country’s aviation industry. It expects profitability of the industry to be adversely impacted in financial year 2020-21 due to lower revenues and high fixed costs.
“While some airlines have sufficient liquidity and financial support from a strong parentage, which will help them sustain over the near term, those already in financial stress are now facing existential crisis.”
However, ICRA vice president Kinjal Shah said the number of flights departing gradually increased from 416 on Day 1 to 1,488 on Day 128 (September 28).
For September, the average daily departures were 1,311, significantly lower than the average daily departures of 2,874 in the same month of last year, though much better than 930 in August.