The global airline sector is among the worst affected due to coronavirus and is expected to see far-reaching effects, a global rating agency said in a report. The strain on the industry's previously growing fundamentals will continue to be felt by the global economy into 2022 and beyond given that air travel supports economic activity across a wide range of other sectors, Moody's Investors Service also said. The global airline industry saw more than 90 per cent fall in demand within weeks of the spread of the coronavirus in March.

"This is driven by our expectation of a gradual and protracted return of passenger traffic which will be inextricably linked to coronavirus-related health and safety concerns and the importance of the passenger airline industry as a critical cog in the broader global economy," it added.

Moody's said the knock-on effects are big for industry stakeholders. Passenger demand for air travel drives demand for key stakeholders in aviation - airports, aircraft leasing companies and aircraft manufacturers as well as a multitude of service providers that keep daily airline operations and airports humming during normal economic times.

Meanwhile, India's domestic airlines are staring at a revenue loss of Rs 1.1-1.3 lakh crore over three financial years, including the current financial year, owing to the coronavirus pandemic, which has led to visa and travel restrictions, CRISIL Research recently said.

Airlines are unlikely to recoup this loss as growth is not expected to return to pre-pandemic levels of double-digit increase at least in the medium term, CRISIL further said. "Indian airlines are staring at a massive Rs 1.1-1.3-trillion revenue forgone over financial years 2020 to 2022 because of the pandemic," the report stated.Also read: 2,426 firms 'looted' Rs 1.47 lakh crore from banks; will govt investigate, asks Rahul Gandhi