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Domestic air travel recovery delayed by 3 months: Ind-Ra

Recovery in domestic and international travel has been delayed by three and six months, respectively, due to Covid resurgence, said India Ratings and Research (Ind-Ra).

The first two months of 2021 witnessed a solid improvement in air travel, after a steep decline in EBITDAR losses in 3QFY21 as airline operations normalised, it said.

However, late March and April have seen a sharp rise in active Covid cases all across India which has significantly impacted air travel and dented confidence in aviation recovery.

Besides, 2021 has brought three new challenges such as higher fuel expenses as crude prices recover amid a soaring global demand, rising competition intensity amid the possible re-start of operations by Jet Airways, and likely pressure on airline yields as the scramble for market share realignment to pre-Covid period begins.

“Ind-Ra believes the domestic air travel recovery should resume in three months, if the fresh Covid wave subsides.

“However, a meaningful international…

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