Indian aviation industry expects to incur large losses in 2021-22

According to consultancy firm CAPA, the Indian aviation industry is expected to continue incurring large losses in 2021-22, while IndiGo airline will emerge significantly stronger than its competitors post the Covid-19 pandemic. While revenues remain under pressure, costs will also increase over the previous year. Brent Crude is assumed to be at an average $50-$60 per barrel and the USD-INR exchange rate is expected to remain in the range of Rs 73-Rs 75 in the next financial year. Airlines will have to carry the costs of a large proportion of their fleet that will remain grounded, especially those that were earlier deployed on international routes.