The Indian aviation industry, which is currently non-operational under the coronavirus-led lockdown, will require funding of up to Rs 35,000 crore till 2022-2023 as profitability may take a hit due to sharp fall in revenues and higher fixed costs, credit rating agency, ICRA, said in a statement on Thursday.
The airlines are estimated to report a 44% decline in revenue in 2020-21, as compared to the previous year, while the industry’s net debt may rise to Rs 46,500 crore by 2021-22, ICRA said.
‘Overall, the industry will witness about 41-46% contraction in domestic passenger traffic and about 67-72 per cent fall in international passenger traffic for the Indian carriers in FY2021,’ it said.
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