Finch Ratings on Airline Sector : 19.05.2021
* COVIDSecond Wave has put brakes on #aviation sector recovery; Sector is also seeing impact of higher #fuel price
* Second wave has put brakes on aviation sector recovery, Sector also seeing impact of higher fuel prices
* Volumes have dropped significantly in May and April; Probably, back to levels of Aug 2020 now
* Fund raising will be difficult in current times; smaller airlines will struggle more
* Go Air may have to look at other options if IPO is not successful
* Restart will depend on confidence of passengers
* See gradual recovery from 20 onwards and probably back to 60% of pre-Covid levels by end of FY22
* Will see consolidation in aviation industry, market share for larger airlines like IndiGo will increase
* Need to be mindful of India Govt budgetary constraints, believe direct support is unlikely
