Indian airport bonds drop to 3-month lows on airline cutbacks

Both Vistara and IndiGo have cut capacity in response to a surging caseload and travel restrictions

The bonds of Indian airport operators dropped to their lowest since October, as a surge in Covid cases dents demand for air travel.
 
The 6.45 per cent 2029 note issued by Delhi International Airport declined to its lowest level since October 12 on Tuesday, while a 4.75 per cent 2026 issue of GMR Hyderabad International Airport fell to its least since October 14.
 
Both Vistara, a joint venture between Tata Sons and Singapore Airlines, and IndiGo, the country’s biggest budget carrier, have cut capacity in response to a surging caseload and travel restrictions. India’s federal government has also announced a tighter quarantine regime for international travellers.