Mumbai: Air passenger traffic in the country is expected to remain under pressure for the first half (April-September) of the current fiscal, with the full year passenger volume likely to go down by about half despite some recovery in H2 FY21, ratings agency ICRA said.
Recovery in air travel demand in a meaningful manner is expected towards FY2022 and passenger traffic levels of 345 million recorded in the year ended March 2019 are likely to be surpassed only by FY2023, it added.
It also said the aviation infrastructure industry is amongst the most severely impacted by the COVID-19 crisis and the setback is expected to be substantial in the near term.
"There prevails considerable uncertainty in air traffic recovery timeline in the wake of subdued demand for air travel for leisure (especially international) by risk averse passengers and likely decline in disposable income in the hands of consumers.
"Moreover, factors like dip in business travel due to subdued global macro-economic environment, increasing use of virtual communication modes by business community and possible continuation of travel restrictions, in some form, by various countries have also significantly influenced the overall scenario," said Anupama Arora, Sector Head and Vice President at ICRA.
Asianet.in/News Desk: Asianet Online