Aviation Sector Braces for Another Year of Losses
India’s domestic aviation industry is staring at another year of significant losses, with projections pointing towards a net loss of Rs 20-30 billion for the financial year 2025-26 (FY26). This grim forecast, released by credit rating agency ICRA on Saturday, July 12, 2025, mirrors the estimated losses incurred during the current fiscal year, 2024-25 (FY25).
The persistent financial strain on the sector highlights the ongoing challenges faced by airlines. High fuel prices and intense competition continue to squeeze profit margins.
ICRA’s assessment underscores the need for strategic restructuring and operational efficiency within the industry. The government’s policies and support measures will play a crucial role in determining the sector’s recovery trajectory.
This continued financial instability raises concerns about airfare affordability and the long-term health of the aviation sector, potentially impacting connectivity and economic growth across the nation. The government’s response and the industry’s adaptation will be key factors to watch in the coming months.
