{"id":18711,"date":"2022-03-04T11:00:00","date_gmt":"2022-03-04T05:30:00","guid":{"rendered":"https:\/\/aviationa2z.com\/?p=18711"},"modified":"2022-03-05T22:02:35","modified_gmt":"2022-03-05T16:32:35","slug":"domestic-aviation-industry-is-expected-to-lose-rs-26000-crore-this-fiscal-year-icra","status":"publish","type":"post","link":"https:\/\/aviationa2z.com\/index.php\/2022\/03\/04\/domestic-aviation-industry-is-expected-to-lose-rs-26000-crore-this-fiscal-year-icra\/","title":{"rendered":"Domestic aviation industry is expected to lose Rs 26,000 crore this fiscal year: ICRA"},"content":{"rendered":"\n<p class=\"has-drop-cap\">According to <strong>local rating agency ICRA Ltd, <\/strong>the domestic aviation industry is anticipated to incur a net loss of Rs 25,000-26,000 crore this fiscal, with<strong> high jet fuel prices and rate caps <\/strong>continuing to be a major concern for airlines&#8217; <strong>profitability<\/strong>. <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img fetchpriority=\"high\" decoding=\"async\" width=\"640\" height=\"480\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/icra-agencies.jpg\" alt=\"Local rating agency ICRA Ltd, the domestic aviation industry is anticipated to incur a net loss of Rs 25,000-26,000 crore \" class=\"wp-image-18713\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/icra-agencies.jpg 640w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/icra-agencies-600x450.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/icra-agencies-300x225.jpg 300w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>Domestic airlines, on the other hand, are expected to have a lesser net loss of <strong>Rs 14,000-16,000<\/strong> crore in the coming fiscal year, thanks to a &#8220;<strong>notable rebound<\/strong>&#8221; in <em>air passenger traffic and a lower debt level, <\/em>according to ICRA. <\/p><\/blockquote>\n\n\n\n<p>During FY22-FY24, the ratings agency predicts that the industry would require extra investment in the range of <strong>Rs 20,000-22,000 crore. <\/strong><\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p><strong>Domestic air passenger traffic<\/strong> is expected to expand by 50-55 percent y-o-y in 2021-22, according to ICRA, thanks to the <strong>rapid pace of immunisation and regulatory authorities&#8217; <\/strong>progressive relaxation of limitations.<\/p><\/blockquote>\n\n\n\n<p>This recovery, however, will be built on a significantly <strong>poorer foundation than in FY2021<\/strong>, according to the report. Given that a return to <strong>pre-COVID-19 levels<\/strong> is projected by FY2024, this will be much lower than pre-COVID-19 levels. <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1000\" height=\"664\" src=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/IMG_20220305_215315.jpg\" alt=\"\" class=\"wp-image-18714\" srcset=\"https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/IMG_20220305_215315.jpg 1000w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/IMG_20220305_215315-600x398.jpg 600w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/IMG_20220305_215315-300x199.jpg 300w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/IMG_20220305_215315-768x510.jpg 768w, https:\/\/aviationa2z.com\/wp-content\/uploads\/2022\/03\/IMG_20220305_215315-750x498.jpg 750w\" sizes=\"(max-width: 1000px) 100vw, 1000px\" \/><\/figure>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>&#8220;<em>With the onset of the second wave of the <strong>pandemic and the later emergence of the Omicron variant,<\/strong> the recovery in passenger traffic remained gradual in the current fiscal<\/em>,&#8221; said Suprio Banerjee, vice-president and sector head of ICRA.<\/p><\/blockquote>\n\n\n\n<p> Further, elevated <strong>aviation turbine fuel (ATF) <\/strong>prices (which were 68 percent higher year-on-year basis in 11 months of the ongoing fiscal FY2022) and <strong>continued fare caps<\/strong> continue to pose a major challenge for the airlines&#8217;.<\/p>\n\n\n\n<p>Stay Informed with us!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Local rating agency ICRA Ltd, the domestic aviation industry is anticipated to incur a net loss of Rs 25,000-26,000 crore <\/p>\n","protected":false},"author":2,"featured_media":18714,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[399,6761],"tags":[82,5461,2321,5462,5463],"class_list":{"0":"post-18711","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-featured","8":"category-news","9":"tag-air-india","10":"tag-domestic-aviation-industry","11":"tag-icra","12":"tag-immunisation","13":"tag-regulatory"},"_links":{"self":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/18711","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/comments?post=18711"}],"version-history":[{"count":1,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/18711\/revisions"}],"predecessor-version":[{"id":18715,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/posts\/18711\/revisions\/18715"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media\/18714"}],"wp:attachment":[{"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/media?parent=18711"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/categories?post=18711"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/aviationa2z.com\/index.php\/wp-json\/wp\/v2\/tags?post=18711"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}