Some airlines in the country could shut down because of lack of cash if the government does not intervene, aviation advisory firm Capa India has said in a report.

According to initial estimates, consolidated losses for all airlines in India, except Air India, in the first quarter of this year are expected at $500-600 million but this is bound to be revised downwards later, it said.

The unprecedented lack of demand to travel because of the travel advisories and visa restrictions following the spread of coronavirus has resulted in a shock which will be far deeper and much longer than what the world saw in 2008, Capa added.

Indian carriers saw a 12-15 per cent dip in yields during the first two weeks of March and this may fall by 25 per cent or more in the near term, Capa said. Forward bookings are down by more than 30 per cent, too.

The report said Indian carriers might initially ground around 150 aircraft, and the number is expected to increase as more domestic operations are curtailed over the coming weeks.