Indian airlines are staring at a revenue loss of Rs 1.1-1.3 trillion over three financial years, including the current financial year, owing to the coronavirus pandemic, which has led to visa and travel restrictions, thereby severely affecting aviation industry across the world, according to a report.
Airlines are unlikely to recoup this loss as growth is not expected to return to pre-pandemic levels of double-digit increase at least in the medium term, CRISIL Research said. "Indian airlines are staring at a massive Rs 1.1-1.3-trillion revenue forgone over financial years 2020 to 2022 because of the pandemic," the report stated.
One would have assumed that the expected plunge in crude oil prices to $38-42 per barrel in fiscal 2021, compared with $64-66 per barrel in fiscal 2020 would have helped airline companies to an extent on the margin front as it forms a sizeable 30-45 per cent of an airline's cost base, it said.
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