Home / Companies / News /  ICRA revises outlook on Indian airports to stable

Ratings agency ICRA has revised its outlook on Indian airports infrastructure to stable from negative earlier. 

ICRA expects the air passenger traffic to reach 90% of pre-COVID levels in September itself on account of surge in demand due to festival season. The air traffic is estimated to further recover to 97-98% of pre-pandemic level by the end of the current financial year, ICRA added. Currently, the domestic air traffic is hovering around 85% of pre-COVID level. 

“Supported by an improvement in the overall revenue and consequent operating leverage benefits along with the increase in tariff (for some major airports), the cash flows available for debt servicing and debt coverage metrics are expected to witness a gradual improvement going forward," Mr. Rajeshwar Burla, Group Head, Corporate Ratings, ICRA, said. 

While the international air passenger traffic has witnessed a steady improvement in the last six months as more international destinations reopened due to ease in travel restrictions, international passenger traffic is likely to cross pre-Covid levels in 2023-24 (Apr-Mar), ICRA said. 

ICRA expects strong demand for air travel in the coming months on account of strong uptick in economic activity, onset of festive and the vacation season.

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