Drop in demand due to travel curbs may stall airline revenues in Q4

Sharp fall in crude oil prices, however, is a positive

Travel curbs announced by the government on Wednesday night and advisories asking people to avoid non-essential travel are expected to hit the aviation sector the hardest. Further, a profit warning by sector leader InterGlobe Aviation (IndiGo) further dampened Street sentiment. While the stock of IndiGo fell 11.85 per cent, SpiceJet cracked 19.55 per cent.

IndiGo indicated it has witnessed 15-20 per cent decline in daily bookings week-over-week. The company also said a sharp depreciation of the rupee will impact its dollar-denominated liabilities, primarily operating leases which have been capitalised. 

Aircraft and engine rentals, as well as repair and maintenance —