Resumption of domestic flights: Risk in travel demand pulls airliners to caution

The Centre for Asia Pacific Aviation (CAPA) in a report has stated that the resumption of flight services following the unlock phase will push,all domestic airlines excluding Indigo to look for an additional 3-3.5 billion funds to cushion the unpredictable nature of the travel demand in Covid scenario.

Stating that the demand-related risks are much higher than its earlier estimates, CAPA said the outlook remains “soft” as the recent traffic (after the resumption of domestic services from May 25) mostly comprised those passengers that were stuck in the “wrong” place at the time of imposition of lockdown on March 25, and started returning to their home base.

“Our earlier funding estimate proved to be conservative. Revised requirements are now likely to be in the range of USD 3-3.5 billion, said CAPA in the report.