‘₹35,000 CR CAN KEEP AIR­LINES AFLOAT TILL FY23’

Hindustan Times (Jalandhar) - - HTBUSINESS -

NEW DELHI: In­dian air­lines will need fund in­fu­sions of ₹35,000 crore till the end of FY23 to stay afloat, credit rat­ing agency Icra said, as lower rev­enue and higher fixed costs erode their prof­itabil­ity. The on­go­ing lock­down to con­tain the covid-19 pan­demic is ex­pected to lead to a 44% de­cline in rev­enue dur­ing 2020-21 from a year ago, the rat­ing com­pany said in a state­ment. The in­dus­try’s net debt is ex­pected to rise to about ₹46,500 crore by 2021-22. “The in­dus­try will wit­ness 41-46% de­growth in do­mes­tic pas­sen­ger traf­fic and 67-72% de­growth in in­ter­na­tional pas­sen­ger traf­fic for the In­dian car­ri­ers in FY21,” it said.

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