Curtailed mobility of people due to the Covid-19 pandemic is expected to shrink India’s domestic air passenger traffic by 40-45 per cent in FY21, rating agency Crisil said on Wednesday.
Similarly, India’s air passenger traffic in the international sector is expected to plunge by 60-65 per cent, Crisil Research said in a report.
“The demand destruction can be gauged from the fact that even after resumption of domestic air services, the load factor is hovering at 50-60 per cent, with primarily unidirectional flow of traffic, limited largely to essential travel and those returning to their home cities or countries,” the report said.
“In the milieu, Indian carriers are expected to log operating losses this fiscal despite lower crude oil prices. And with the Covid-19 pandemic still raging in much of the world, a revival to pre-pandemic levels appears unlikely even next fiscal.”
