Categories: Business

lockdown to cause Rs 25000 cr loss in revenue to aviation says Crisil

Crisil on Aviation Sector

new Delhi. According to a report by CRISIL, the outbreak of the Corona virus epidemic and the subsequent lockdown imposed could result in a huge loss of Rs 24,000-25,000 crore in earnings to the domestic aviation industry during the current financial year. Jagannarayan Padmanabhan, director and practice leader, transport and logistics, Crisil Infrastructure Advisory, said aviation companies in the sector would be the worst hit and accounted for more than 70 per cent (around Rs 17,000 crore) of the total losses. He said the loss to the airport operators was between Rs 5,000 and Rs 5,500 crore and that of the retailers at the airport was Rs 1,700 to 1,800 crore.

The report said that if the restrictions on travel to major aviation hubs like Mumbai, Delhi, Chennai and Kolkata continue for a long time, the losses would be much greater. Also, according to the report, it will take the aviation industry 6-8 quarters to return to the pre-epidemic level. Padmanabhan said that this is an early estimate and if the lockdown progresses from the first quarter the loss could be much higher.

This post was published on May 7, 2020 7:37 pm

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