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The flight path to recovery for airports

 

Summary

 

  • Growth: Traffic recovery underway; pre-pandemic (fiscal 2020) level expected to be achieved by end of fiscal 2023
  • Investments: Investment to increase 1.5 times to Rs 70,000 crore over the next five-year period; private sector to drive momentum backed by NMP focus
  • Funding: Not expected to be a constraint given the flow of equity and debt seen in the past 2-3 years
  • Leverage: Private operators will operate at leverage higher than long-term average in fiscals 2023 and 2024; traffic growth and tariff hikes to restore financial metrics closer to long-term averages
  • Regulatory environment: Largely conducive. Timely release of tariff order for operators paves way for stability and recuperation of lost revenue
  • Outlook & monitorables: Stable. Monitorable: Another Covid-19 wave; growth in non-aero revenue per passenger vis-à-vis the fiscal 2020 level