NEW DELHI: Suspension of all air services following the outbreak of the Covid-19 pandemic is expected to impact the aviation industry’s growth prospects severely.
According to ratings agency ICRA, FY2021 (2020-21) is expected to witness a 41-46 per cent de-growth in domestic passenger traffic, while international passenger growth for Indian carriers is likely to witness a year-on-year fall of 67-72 per cent.
All scheduled domestic passenger air services had been suspended for two months—from March 25 to May 25, 2020.
Subsequently, scheduled domestic flights recommenced operations with effect from May 25, 2020 to a limited extent, at a maximum of one-third of their respective approved capacity.
ICRA expects H2FY21 will witness some recovery, with Q4 FY21 witnessing a y-o-y de-growth of just 3-14 per cent in domestic passenger traffic with improved passenger load factors (PLFs). Similarly, international traffic is expected to improve sequentially, with Q4 FY21 likely to contract 30-40 per cent.