Since the outbreak of the pandemic, the civil aviation sector in India that is a thriving industry has been hard hit. From job losses to revenue fall, the Indian Aviation Industry has contracted and is expected to incur a net loss of Rs 26,000 crore while its debt level may increase to Rs 1.2 lakh crore in the current fiscal year, credit rating agency ICRA said.
According to the Investment Information and Credit Rating Agency of India, the domestic carriers will remain stressed due to debt burden and as a result, the outlook of the Indian aviation sector will remain negative.
Although, the industry will witness a year-on-year growth of 45-45 percent in domestic traffic and 80-85 in international traffic during 2021-22, but will have a significantly lower growth rate in contrast to 2015-16 and 2012-2013.
During the first wave of pandemics, the civil aviation workforce shrank by 39,000 in April-September. The unprecedented outbreak of Covid-19 eventually brought a heavy disruption in the aviation industry leading to over 39,000 job losses in few months.
However, most domestic airlines have initiated fundraising plans to get over the ongoing liquidity crisis and cash burden due to the impact of rising jet fuel prices and suspension of commercial flights in wake of coronavirus.