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While the fliers have not yet resumed flying, it is now being widely recognised that the global aviation industry is going through the toughest-ever phase in its 100-year old history. The uncertainty of survival is bound to cause unprecedented turmoil and has fully paralysed the sector.
Despite the aviation industry being hit by the outbreak of Covid-19 pandemic, many airlines are preparing to join other airlines in the intercontinental market by December 2020. They seem to be working very hard for the restart of the air services. The $1.9 trillion money manager, Pacific Investment Management Co. anticipates an economic recovery and that the next market rally will lift the aviation sector – beaten-down the most by the pandemic- as people start to travel again.
The fear of corona has driven away the fliers. In June 2019, low-cost airline Spicejet had 94% occupancy, it is 68% in June 2020. At this level, the airline can not break even. It means not operating will be more profitable.
India’s two listed airlines, IndiGo and SpiceJet, lost up to Rs 125 billion across January-March and April-June quarters.