Air demand recovery remains uncertain; IndiGo to emerge stronger: CAPA on Indian aviation in 2021

The air demand recovery for Indian aviation industry remains uncertain, especially international traffic in 2021 in the wake of novel coronavirus pandemic, aviation consultancy firm CAPA India on Tuesday said.

Releasing the 10 key issues to watch in Indian Aviation in 2021, the firm also added that long haul traffic, in particular, is likely to take some time to repair.

“FY2022 is expected to be another year of large losses for the entire industry, but especially airlines,” said CAPA India in its report about the ‘top ten trends to watch in 2021’

The report said consolidation is inevitable in the Indian aviation sector and it could result in a “2-3 airline system” in the near to medium term.

“The structure of competition may change in the near to medium term, possibly resulting in a two-horse race in both the airline and airport sectors,” it mentioned.

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