The aviation sector is one of the worst-hit industries during the COVID pandemic in 2020. The major national and international airlines had suffered a huge loss and had to lay off employees, cut some percentage of their salary, and sent them on leave without pay during this challenging time.
Travel restrictions were uplifted from domestic flights during the unlock phase. Scheduled domestic flights were restarted in a limited manner from May 25. As people are stepping to explore the tourist destinations or meet their family and friends, the industry is slowly recovering, giving more hopes to survive for the airlines.
Moreover, with the vaccination rollout from January, the Indian aviation sector is hoping to bounce back quickly. However, analysts of the International Air Transport Association (IATA) has projected that despite the COVID-19 vaccines rolling out worldwide, the recovery of demand for air travel would reach the pre-crisis levels till 2024. IATA expects that if the countries reopen their border by mid-2021, the overall revenues should grow to $459 billion in 2021.
IATA notices a trend that leisure travelers have shifted towards exploring their home country as it is perceived safer. This is a good sign of the improved performance of the aviation industry in 2021. Thus, the domestic markets are expected to perform better than international services.