Omicron impact | ICRA lowers aviation recovery estimates amid third COVID wave

The outbreak of a new wave of COVID-19 due to the emergence of the Omicron variant of COVID-19 will result in a 40-42 percent fall in domestic passenger traffic in January, ICRA said in its report.

Moneycontrol News

January 20, 2022 / 08:15 IST

Source: Reuters

Rating agency ICRA on January 19 cut its estimates for recovery in the domestic aviation market to 52 percent of pre-pandemic levels from 62 percent earlier due to the outbreak of the third wave of COVID-19 in the country.

The outbreak of a new wave of COVID-19 due to the emergence of the Omicron variant of COVID-19 will result in a 40-42 percent fall in domestic passenger traffic in January, ICRA said in its report.

The fall in domestic air passenger traffic coupled with the imposition of localised restrictions in key states and the consequent slowdown in leisure travel has led to the rating agency reducing its outlook for recovery in the country's aviation market.

"Overall, passenger traffic is expected to be lower by 40-45 per cent in Q4 FY2022 and the traffic recovery for FY2022 is moderated to 52 per cent of pre-Covid level as against our earlier estimates of 62 per cent of pre-Covid level," Rajeshwar Burla, Group Head of Corporate Ratings at ICRA said in a press release.

However, the rating agency said that it does expect a strong rebound in domestic air passenger traffic after the third wave of COVID-19 much faster when compared to the second wave of pandemic once the situation normalises.

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Omicron impact | ICRA lowers aviation recovery estimates amid third COVID wave

The outbreak of a new wave of COVID-19 due to the emergence of the Omicron variant of COVID-19 will result in a 40-42 percent fall in domestic passenger traffic in January, ICRA said in its report.

Source: Reuters

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