While theft operations remain suspended in a dozen airports due to the tension between India and Pakistan, Indian aviation players Indigo, Air India and Spicejet should undergo income loss of 30 breaks of rupees per day, indicates that a HSBC report.
The World HSBC World Research report indicates that Indigo has canceled nearly 170 flights, Air India Group canceled around 115 and Spicejet canceled around 35 flights. These also include around 14 to 15 international flights to / from Thailand, Sharjah, Abu Dhabi, Dubai and the United Kingdom.
The flights have been suspended since May 7 with the launch of the Sindoor operation by the Indian government in the terrorist camps in Pakistan and the cashmere occupied by Pakistan. Flights to certain interior sectors remain suspended until May 10.
“Based on current cancellations, 8.5% of Indigo’s capacity (seats) will be assigned while Air India will have an impact on 18% of its capacity and Spicejet 26%,” he said.
In terms of financial impact, the report indicates that it is not easy to calculate because there are many mobile parts such as the way in which these airlines can deploy this spare capacity elsewhere, how these cancellations will have an impact on transit traffic, etc.
“But everything else is equal, we calculate the loss of income of RS 16.6 crosses and a loss of EBIT of RS 7 crores for indigo, loss of income from RS 2.3 crores and loss of EBIT of RS 1.5 crores for the spice jet and a loss of income from Rs 10.5 crosses and a loss of RS 5 crore for air India by day,” he added.
Indian hotel industry could also be loss due to these disruptions, especially because it is the first holiday season in India. The major disturbance could be the loss of incoming international traffic.
“Intensive international tourism income represents almost 10% of the Indian Hotels Company Limited (IHCL) total income and approximately 15% in Hospitality Ventive. On our calculation, everything else being equal, Indian hotels could cope with losses of EBIT of approximately RS 1-1.5 crores on the loss of international and ventive tourism, “said.
Airlines have issued the passengers for the disruption of flights due to the current situation, while offering a reimbursement or complete reproduction of flights at no additional cost. Even online booking platforms offer free cancellation or changes in dates to customers.
Nishant Pitti, founder and president of the Easemytrip, said that with degeneration of tensions between India and Pakistan, travelers are invited to remain aware.
“We advise all our customers to be cautious and stay up to date on official travel advice before planning trips to sensitive regions,” said Pittie.
The military strike comes after a terrorist attack in Pahalgam, Jammu-et-Cachemire, on April 22, in which 26 civilians, including a Nepalese national, were killed by activists based in Pakistan.
