InvestorQ : Do you see airline companies benefit from the opening up of international flights?
Rutuja Nigam made post

Do you see airline companies benefit from the opening up of international flights?

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2 months ago
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In fact, for the airline companies, this decision to restart all international flights would be positive in terms of sentiments and also the way they are able to absorb their costs more effectively. The Ministry of Civil Aviation has officially announced that effective 27th March 2022, all scheduled international passenger flights will begin normal runs. This is almost after a gap of 2 years since international flights were either banned or restricted.

This will also mark the end of air transport bubbles on specific routes in the light of the large scale normalization. This will boost international capacity and also soften airfares. Currently, India operates 617 international flights representing 50% of pre-COVID capacity and will help them boost their RASK-CASK spread. It will also be a blessing for international tour operators; the worst hit on account of the contact sensitive nature of their core business.

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