Domestic air traffic may fall 46% in FY21

NEW D E LHI: Domestic air passenger traf fic is lik ely to witness a de-g rowth of 41 to 46 per cent in the current financial y ear w hile international traf fic ma y see a f all of 65 to 72 per cent, accor ding to in vestment information agency ICRA.

Thus the revenues of the Indian aviation industry are expected to witness significant de-growth. The profitability of the industry will al so be a dversely impacted due to lower revenues and high fixed costs, it said.

While some airlines have sufficient liquidity or financial support from a strong parentage which will help them s ustain o ver the near ter m, said ICRA, the air lines which we re a lready in financial stress are now facing an existential crisis.

Even for airlines with sufficient liquidity, there is a significant w eakening of credit metrics and liquidity profile. Many airlines have already undertaken several cost rationalisation measures.

These inc lude salary cut s fo r their emplo yees, including leave without pay and l aying of f pilots and crew members to cut costs. Airlines have also sought deferment in lease rental payments.

TOK YO: Japan's econo my shrank at a record, even worse rate in the April-June quarter than initially estimat ed.

The Cabinet Office said on Tuesday Japan's seasonally adjusted real gross domestic product contracted at an annualised rate of 28.1 per cent, worse than the 27.8 per cent fig ure given last month.

The coronavirus pandemic, which has people staying home, r estaurants and stores empty or closing, and travel and tourism nose-diving, has hurt all the world's economies and many compan ies. But it has slam med Japan's export-reliant economy.

Restoring growth will be a priority as the country prepares to choose a new leader to replace Prime Minister Shinzo Abe, who is resigning for health reasons. A vote among governing party members is exp ected next week.

Other data released Tuesday showed cash earnings improving somewhat, and consumer spending and other busin ess activity is ex pected to r ebound following the sharp drops as the co untry sought to bring the coronavirus pandemic under