This view reflects the ICRA’s view that Indian airlines are likely to remain weak in the midst of weak air traffic due to continued restrictions on international travel and continued demand for domestic travel due to the increase in transit.
“Despite the pace of improvement in vaccination, measures taken to curb the growing infection are emphasizing the potential for recovery of Indian carriers. In addition, the credit profile of most Indian carriers is characterized by poor liquidity.
Domestic passenger transport has continued to recover since May 25, 2020, when domestic airlines gradually opened up, reduced traffic and lifted restrictions by various state governments. However, Q1 FY2022 has seen a gradual decline of% 53% (compared to Q4 FY2021) in domestic passenger transport due to the resurgence of the second wave of Covid-1. Although the transition shows a downward trend, domestic passenger transport is expected to increase by 61% in July 2021 and 30-31% in August 2021, ”the ICRA said.
With the launch of Covid-190 2.0, recovery of funds will be delayed for FY2022. As a result, the level of debt for the industry is likely to be high and could be around Rs 100 crore. 1200 billion (including lease liability) for FY2022, additional financing assistance is required for the industry. 450-470 billion between FY2022 and FY2024.