Aviation Q1 Results Preview - Covid-19 Wave Induced Turbulence To Widen Losses: Prabhudas Lilladher

An aircraft takes off from Netaji Subhas Chandra Bose International Airport in Kolkata, India. (Photographer: Arco Dato/Bloomberg)

Aviation Q1 Results Preview - Covid-19 Wave Induced Turbulence To Widen Losses: Prabhudas Lilladher

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Prabhudas Lilladher Report

Demand environment collapsed in Q1, as Covid-19 second wave delayed industry’s recovery flight by six to eight months.

May month saw average daily flights nosedive to 30%-35% of pre-Covid-19 levels, while number of passenger per flight dipped to 73 (last seen in May 2020).

With dent in consumer confidence, we expect yields to remain under pressure.

In addition to this, rising input cost environment (aerodrome traffic frequency up 11% QoQ; rupee depreciation of 1.2% QoQ) is likely to stretch industry finances, in our view.

Click on the attachment to read the full report:

Prabhudas Lilladher Aviation Q1FY22 Result Preview.pdf

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