Aviation to record revenue loss of Rs 25,000 crore, structural changes likely: CRISILLogYcode
According to CRISIL, India’s aviation industry will crash this tax with a revenue loss of Rs 24,000–25,000 crore.
In its advisory, CRISIL reported that airlines will be the worst impacted, contributing more than 70% of the losses, or Rs 17,000 crore, followed by Rs 5,000-5,500 crore airport operators, and Rs 1,700-1,800 crore airport restaurants (including restaurants, food and drinks, and duty-free).
This would reverse the 11 per cent average trend growth reported by the industry over the past ten years, rendering it one of the economy’s most adversely affected industries.
The prolonged lockout to tackle the Covid-19 pandemic, which has both land and air traffic halted, is likely to result in major casualties in all sectors of the transportation industries.
What is worse, if travel restrictions continue longer in hubs like Mumbai, Delhi, Chennai and Kolkata, the losses would rise. We expect the aviation sector to reach prepandemic levels by at least 6-8 quarters.