Categories: Business

Domestic air traffic to fall more than 40 percent in FY 21 says ICRA

Photo: FILE

ICRA report on domestic aviation industry

new Delhi. Rating agency ICRA estimates that domestic passenger traffic could go down between 41 and 46 percent during 2020-21. The rating agency has said in a study that the impact of the Kovid-19 outbreak will be stronger and on international travel will last longer than on domestic travel.

The study report states, "Thus, the international passenger growth rate for Indian carriers may decline by 67–72 percent year-on-year basis in FY 2021. Traffic significantly increased in Q4 FY2021 Improvements may occur, and the year-on-year basis decline may decline to 30-40 percent. " According to the study, even though domestic air traffic has started in a limited way, it will not help the industry to regain lost ground in FY 2021.

"However, there will be some recovery in the latter half of FY 2021. In the third period of FY 2021, the decline in domestic passenger traffic will be only 3-14 percent on a year-on-year basis," the report said. It is noteworthy that air service has been suspended since March 25 due to the nationwide lockdown implemented to prevent the spread of Kovid-19. Domestic air service has been restored in a phased manner since 25 May.

Currently, airlines are allowed to deploy only 45 percent of their total capacity. The Directorate General of Civil Aviation (DGCA) on Friday extended the ban on commercial international flights operations till 31 July.

This post was published on July 4, 2020 12:15 am

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