Indian Aviation Flies into Turbulence with Projected Losses

The Indian aviation sector is on course for higher fiscal losses, predicted between Rs 9,500-10,500 crore, a significant leap from the estimated Rs 5,500 crore in FY2025, according to ICRA. This is attributed to ongoing geopolitical strife and daunting trade barriers.

A modest growth in domestic air passenger traffic, projected at 4-6 percent to 172-176 million in FY2026, falls short of previously anticipated figures of 7-10 percent. The sluggish growth, coupled with increasing aircraft deliveries, is expected to expand net losses significantly.

Despite a 5 percent capacity boost in FY2025 and promising aircraft orders, the air travel atmosphere remains cautious amid economic uncertainties and recent tragic events impacting traveler confidence and yields negatively.

(With inputs from agencies.)