ICRA cuts aviation recovery estimates amid third COVID-19 wave

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.

"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.