Domestic air traffic to decline by 41-46% in FY21 due to COVID impact: Icra

The recommencement of commercial passenger flight services in a graded manner is unlikely to help the domestic aviation industry recover in the current financial year with domestic air traffic expected to shrink by 41-46% and international travel demand by a negative 67-72% year-on-year owing to COVID-19, a report said on Friday.

The domestic passenger flight services restarted from May 25 after a two months hiatus due to the lockdown in the wake of coronavirus pandemic. The international operations, however, remained suspended since March 22 for similar reasons.

The government on Friday extended the suspension of scheduled international flights till July 30. It, however, said that some international scheduled routes may be permitted on a case-to-case basis.

“As per our study, though restricted recommencement of domestic air traffic has begun, this will in no case help the industry to recover the lost ground in FY2021. However, H2 FY2021 will witness some recovery, with Q4 FY2021 witnessing a degrowth of just 3-14 per cent y-o-y in domestic with improved passenger load factors (PLFs),” ratings agency Icra said in the report.

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