- Indian online travel agency (OTA) MakeMyTrip said macroeconomic headwinds affected its calendar Q4 earnings, even as the Indian government works to improve airport infrastructure.
The International Monetary Fund has downgraded India’s GDP growth to 4.8% for the current fiscal year, down from 6.8% for the prior fiscal year. The corona virus outbreak has led to cancellations of Southeast Asia and China bookings. Consumer confidence is flagging. The demise of Jet Airways resulted in fewer seats to sell.
All of these factors were challenges to the air travel market in India, MakeMyTrip said. On the positive side of the ledger, the Indian government has pledged investment in dozens of new airports to increase air connectivity across the country.
The government also is investing in infrastructure around major tourist sites and is building new museums in an effort to boost tourism in India.