Airlines loss rising sharply

 Indian airline industry is experiencing steepest ever loss in FY22. The loss is more than Rs 20,000 crore for the current fiscal. This is 44% higher than the last fiscal. In FY21 the losses reported were Rs 13,853 crore. According to the CRISIL Ratings the losses are extremely high due to the two significant reasons: the headwinds of third wave of COVID-19 pandemic and high aviation turbine fuel (ATF) prices. This would put the recovery of industry beyond FY23.

The average daily domestic passenger traffic shows the declining trend with numbers far away from pre-pandemic levels. There is an increasing trend of losses after FY16. From Rs 1,397 crore in FY16 to approximately Rs 20,000 crore in FY22. Likewise the ATF prices are even showing inflationary tendency. The analysis is based on three large airlines, Indigo, Spice Jet and Air India.

Source: Financial Express

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