Moneycontrol
HomeNewsBusinessMarketsCOVID-19 impact: Stormy clouds for aviation ahead; travel ban serious blow to earnings
Trending Topics

COVID-19 impact: Stormy clouds for aviation ahead; travel ban serious blow to earnings

CARE Ratings said that there seems to be turbulence and stormy clouds for the Indian aviation industry as airlines will be operating on sub-par capacity which will result in low ticket booking, fall in revenues and low passenger load factor (PLF).

April 01, 2020 / 11:19 IST
Story continues below Advertisement

The aviation sector is approaching rough weather as the spread of novel coronavirus (COVID-19) has triggered travel restrictions and lockdown which will hit the airline players' revenue and margin significantly.

Brokerages are of the view that the industry will take longer than expected to recover fully from the disruption caused by COVID-19.

Story continues below Advertisement

"Even as the macros of the Indian aviation industry may be in favour of propelling its growth, the industry may not fully recover any time soon post the effects of the pandemic which has affected business operations, travel and tourism and economies world over," said CARE Ratings in a note on March 30.

Domestic air traffic growth has been muted at 3.6 percent year-on-year (YoY) to 13.39 crore pax over April 2019-February 2020 due to weak demand. For March 2020, this should further weaken due to travel advisories and then a complete suspension of flights.