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Aviation loss to widen to ₹21,000 cr. in FY21: ICRA
The Indian aviation business is estimated to report a major web lack of ₹21,000 crore in FY21, in opposition to a web lack of ₹12,700 crore in FY20, with the business debt degree growing to ₹50,000 crore (excluding lease liabilities) over FY21-22, ICRA stated in a report.
The score company stated the business would require further funding of ₹35,000-₹37,000 crore over FY21-23.
“The two listed airlines [IndiGo and SpiceJet] have together lost ₹31 crore per day during H1 FY21. As the airlines gradually recommenced domestic operations, along with continued chartered and cargo operations, thereby resulting in significantly higher yields, their daily cash burn started reducing,” Kinjal Shah, VP, ICRA Ltd., stated. “This resulted in a lower daily loss of ₹26 crore for the two listed airlines in Q2 FY2021, against ₹37 crore in Q1 FY2021,” she stated.
“With a sequential improvement in domestic passenger traffic, and continued cost rationalisation initiatives by the airlines, further supported by the benign aviation turbine fuel (ATF) prices, the daily cash burn for airlines has further reduced in Q3 FY2021,” Ms. Shah stated.