Notwithstanding the government’s decision to resume air traffic in the country, demand for commercial airlines is least likely to revive anytime soon given the impact of the pandemic on leisure travel and fast adoption of technologies that enable remote working for enterprises.
In addition, analysts believe that the government’s stance to cap ticket prices will affect the sector’s profitability since airlines would be unable to cover fixed costs.
According to industry trackers, after resuming services amid a nationwide lockdown that has lasted beyond two months, airlines will largely have to cater to the stranded passengers for at least the first 15 days. Once this phase is over, they may face demand slump owing to two factors.
