The Indian aviation industry contributes around USD 72 billion to GDP, according to INVESTINDIA. As per International Air Transport Association (IATA) forecasts, India will become the third-largest aviation market in terms of passengers by 2024.
While the airline industry was doing reasonably well till the end of FY20, the industry has been one of the hardest hit after the Covid-19 pandemic took place. In 2020, industry global revenues totaled $328 billion, around 40 percent of 2019, which was also same as in 2000, in nominal terms. It was expected that the industry will return to its 2019 position not before 2024. It is expected that the Indian airlines will incur a loss of $4.1 billion loss in the current fiscal (2021-22), with another $3.9 billion losses reported in the last fiscal.