Indian aviation industry to report net loss of Rs 250-260 billion in FY2022: ICRA

Suprio Banerjee, Vice President and Sector Head, ICRA Limited, says, “With the onset of the second wave of the pandemic and the later emergence of the Omicron variant, the recovery in passenger traffic remained gradual, in the current fiscal. Further, elevated aviation turbine fuel (ATF) prices (higher by ~68% on Y-o-Y basis in 11M FY2022) and continued fare caps continue to pose a major challenge for the profitability of the airlines. Thus, the Indian aviation industry is expected to report a net loss of ~Rs 250-260 billion in FY2022 as per earlier estimates of ICRA. However, expected commencement of scheduled international operations and the waning ‘Omicron’ wave, will result in a notable recovery in passenger traffic in FY2023