Aviation Update - Second Covid Wave, Absence Of Corporate Travel To Delay Complete Revival: ICICI Securities
A grounded passenger aircraft on the tarmac. (Photographer: Paul Hanna/Bloomberg)

Aviation Update - Second Covid Wave, Absence Of Corporate Travel To Delay Complete Revival: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Top long-term trends in aviation include -

1. Doubts on air travel recovery post Covid-19, especially in the corporate segment. Average daily passenger count declined from 387,000 in FY20 to 64,000 in June 2020 and recovered to 280,000 in February 2021 to again fall to 238,000 in April 2021.

2. Interglobe Aviation Ltd. has been able to make payment to lessors while others have demanded moratoriums, hence we expect major negotiations between lessors and airlines in FY22.

3. Industry consolidation due to weak balance sheet among many airlines.

4. Improved pricing discipline.

Click on the attachment to read the full report:

ICICI Securities Aviation Sector Trends.pdf

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