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Pandemic delayed aviation sector recovery by 6 months - The Hindu BusinessLine

Pandemic delayed aviation sector recovery by 6 months
May 06, 2021
Higher fuel prices, lower yields reasons for setback
The Indian aviation industry is staring at sustained headwinds as Covid-19 cases are rising in India. Aviation experts said that the recovery will be delayed by six months. Higher fuel prices, lower yields, and tough competition are likely to pose obstacles for the airline industry.
So far, at least 15 countries have banned flights to and from India amid rising cases, while others have issued fresh travel norms for Indians. Back home, several States have imposed stringent rules amid rising cases.
Centrum Broking has corrected its forecast of recovery. Ashish Shah, Senior Research Analyst at Centrum Broking said, “The industry recovery forecast is likely to reach only 75 per cent of pre-Covid levels in FY22 as against 85 per cent earlier recovery that was expected.” India Ratings and Research has said that the recovery in domestic and international travel has been delayed by three and six months, respectively.

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