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Airlines and airports faced a sudden decline in passenger traffic, of high magnitudes. This disrupted the operational cash flow leading to severe liquidity crunch. Airlines & airports had to furlough employees, reduce operations correspondingly, and rely on state aid to ensure financial sustainability during peak periods of the pandemic (2020). International air travel has been severely impacted due to various travel regulations, uncertain travel schedules, and vaccination policies. These factors had declined at the beginning of 2021, leading to quicker forecasts of overall industry recovery. But, the second wave of COVID-19, with various mutations (Delta variant) had constricted the recovery again, leading to several travel restrictions from various countries. These regulations were again gradually relaxed in the third and fourth quarters of 2021. Passenger confidence in air travel, recovery and growth of local tourism industry, and recovery of corporate air travel will be key deciding factors in the recovery of international air travel. Revival of the industry is to be led by the recovery and growth of domestic air travel. Even this segment was impacted by total lockdowns across countries.