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A sharp rise in Covid-19 infections in select states and measures taken to curb them continue to weigh on recovery prospects
Credit outlook negative for aviation industry: ICRA ANI | Updated: Mar 10, 2021 15:04 IST
However, there has been sequential improvement despite continuation of restriction on international traffic and subdued demand from the corporate traveller segment.
Notwithstanding the improving pace of vaccination, the sharp rise in infections in select states and measures taken to curb them continue to weigh on the recovery prospects, said ICRA. Besides, the credit profile of most airlines continues to be characterised by weak liquidity position.
ICRA said it expects earnings of the industry to be adversely impacted in FY2021 due to lower revenues and high fixed costs. It estimates the aviation industry to report a significant net loss of Rs 21,000 crore in FY21 against a net loss of Rs 12,700 crore in