The aviation industry is caught between a rock and a hard place. During the three COVID-19 waves, as the number of passengers reduced drastically, losses incurred by airlines in India increased. But despite the massive reduction in the number of flights operated, aviation firms continued to pay salaries, airport fees, aircraft and engine rentals. So, while revenues dried up, their expenses remained the same. Between the waves, movement restrictions were eased in varying degrees and passenger traffic increased. The number of flyers surged, especially after the Omicron wave ended. But so did the price of aviation fuel. As fuel prices have affected profits, the industry’s recovery from the pandemic is delayed. Thus, despite an increase in passenger traffic, airline firms continue to suffer
Profit-loss statement
The graph shows IndiGo and SpiceJet’s profit/loss made after tax in ₹ ‘000 million. Even before the pandemic outbreak, airlines were making losses due to poor economic conditions
