ICRA states that Indian air passenger traffic fell by 3-5 per cent in 2019-20

Credit rating agency ICRA has stated that the country’s air passenger traffic has registered a negative growth of 3-5 per cent in 2019-20, as traffic slowed even before the coronavirus pandemic. The decline has been due to a host of factors. These include higher airfares, grounding of Jet Airways and overall sluggishness in demand. For the current fiscal year too, downward revisions have been made for air traffic projections. CAPA projects that India’s air traffic is expected to drop to 80 million-90 million passengers in 2020-21 and delivery of over 200 aircraft to Indian airlines is likely to be deferred by up to two years. CAPA also estimates that Indian carriers will need up to a year to get back to capacity levels that existed before the coronavirus outbreak.

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