Air passenger traffic likely to fall by 45-50% in FY21: ICRA

 Air passenger traffic is likely to fall by 45-50 per cent in FY21, credit rating agency ICRA said on Wednesday.

In a research note, ICRA said that passenger traffic at airports will remain under pressure for H1FY2021, with some recovery likely only in H2FY2021, on a full year basis.

"The aviation infrastructure industry is amongst the most severely impacted sectors to bear the brunt of the novel coronavirus (Covid-19) pandemic and the setback on the industry is expected to be substantial in the near term," the note said.

As per the ICRA note, decline in air travel globally pursuant to spread of the pandemic and subsequent drastic precautionary measures undertaken by the Centre leading to pan India lockdown and near closure of airport operations, has led to a sharp contraction in air traffic in Q4 FY2020 and negligible passenger traffic in the month of April 2020 and May 2020.

"Although most airports resumed operations by the end of May 2020 for domestic travel, with restrictions on number of flights as well as passengers, the resumption of international commercial operations remains stalled," the note said.

"There have been extremely few international flights, limited largely to operations to bring back stranded Indians or repatriation of foreign citizens."
According to Anupama Arora, Sector Head & Vice President - Corporate Ratings, ICRA: "With almost negligible air traffic already in the first two months of the current fiscal, possible dilemma amongst travellers to travel amidst continuing pandemic fears and gradual addition of capacities by airlines, passenger traffic at airports is expected to remain under pressure for H1FY2021, with some recovery only likely in the second half."

"As a result, passenger traffic is estimated to witness sharp YoY decline of 45-50 per cent in FY2021."

In FY19, airports in India handled around 345 million passengers, driven by strong growth especially in domestic traffic

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