Domestic airlines' losses to narrow in Q3 on strong yields, traffic growth

Average daily flights and passenger traffic were at 89% and 85% of pre-Covid level in December. Passenger per flight rose from 112 in September to 128 in December

While the third wave of pandemic has slammed the brakes on air travel once more, domestic airlines are expected to see contraction in losses in the October-December quarter due to growth in passenger traffic and strong yields.

Listed airlines IndiGo and SpiceJet, collectively, posted a loss of Rs 5,901 crore in the first half of 2021-22 (FY22) due to Covid-19 impact and higher aviation turbine fuel (ATF) cost.  

In the second quarter (Q2), IndiGo and SpiceJet posted losses of Rs 1,435 crore and Rs 562 crore, respectively.

In the third quarter (Q3), airlines have seen a rebound. According to domestic brokerage Prabhudas Lilladher,