It is no surprise that Covid-19 has massively impacted finances and jobs in the domestic aviation sector.
Global analytics company Crisil’s latest report states that the aviation industry will ‘crash-land’ this fiscal year with a revenue loss of ₹24,000–25,000 crore.
The agency reveals that would reverse the trend growth of 11 per cent per annum the industry has logged over the past ten years, making it one of the most adversely affected sectors of the economy.
Director and practice leader, transport and logistics, Crisil Infrastructure Advisory, Jaganarayan Padmanabhan said, “Airlines will be the worst-affected, contributing more than 70 per cent of the losses approximately ₹17,000 crores) followed by airport operators with ₹5,000-5,500 crore and airport retailers (including retail, food and beverages and duty-free) with ₹1,700-1,800 crore.”
The company said the losses will climb if travel restrictions last longer in hubs such as Mumbai, Delhi, Chennai, and Kolkata. Padmanabhan said, “We expect the aviation sector will take at least six to eight quarters to reach pre-pandemic levels.”