The Indian aviation industry is projected to post a net loss of up to Rs 3,000 crore in fiscal year 2025 and fiscal year 2026, as compared to a net profit of Rs 1,600 crore in fiscal year 2024.
The projected losses are due to anticipated pressure on yields as airlines strive to maintain adequate passenger load factor amid elevated aviation turbine fuel prices.
The fuel cost accounts for around 30-40% of the airlines' expenses, putting further pressure on profitability.
The industry-wide net losses are expected to remain range-bound, and the recovery in industry earnings is likely to be gradual.