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Bloomberg Quint

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Image Credit: Bloomberg Quint

Indian Aviation Industry To Post Net Loss Of Upto Rs 3,000 Crore In FY25, FY26: ICRA

  • 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.

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