Rating agency ICRA expects domestic passenger traffic during 2020-21 to de-grow in the range of 41-46 per cent.

The rating agency, in a study, said the impact of Covid-19 outbreak will be more profound and last longer on international travel, compared to the domestic one.

"Thus, FY2021 international passenger growth for Indian carriers is likely to witness a significant Y-o-Y de-growth of 67-72 per cent, with the traffic expected to improve sequentially, with Q4 FY2021 likely to witness Y-o-Y de-growth of 30-40 per cent," the study report said.

As per the study, though restricted recommencement of domestic air traffic has begun, this will, in no case, help the industry to recover the lost ground in FY2021.

"However, H2 FY2021 will witness some recovery, with Q4 FY2021 witnessing Y-o-Y de-growth of just 3-14 per cent in domestic passenger traffic with improved passenger load factors (PLFs)," the report said.

Scheduled air services were suspended on March 25 due to the nationwide lockdown to check the spread of Covid-19, although domestic air services resumed in a phased manner from May 25.

Currently, airlines are only allowed to deploy 45 per cent of their total capacity.

On Friday, the Directorate General of Civil Aviation (DGCA) extended the suspension on scheduled commercial international flight operations to and from India till July 31.