Credit rating agency CRISIL said the second wave of COVID-19 in the country is expected to arrest the last six months of recovery made by airlines, which together could lead to a net loss of V 9,500-10,000 crore.
The rating agency, which analyzed the top three airlines for about 78% of total passenger traffic, said losses in this fiscal year would be 35–40% lower than the levels seen in 2021.
Domestic aviation was brought to a grinding halt between March 25 to May 25 last year during a nationwide lockout.
Factors responsible for preventing aviation recovery were rising aviation turbine fuel prices and the resurgence of COVID-19 infections across the country, particularly in Mumbai and Delhi, which account for 36% of the overall traffic.
Crisil cited the average daily domestic passenger air traffic which declined by 20% in April 2021, which was around 2.35 lakh daily trips from the level seen in February 2021. Nevertheless, traffic can increase by 120–130% of FY2021 for the entire year, it added.
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