Indian aviation industry may post higher losses at ₹9,500-10,500 cr this fiscal: ICRA report

Mumbai, August 28 (PTI) India Aviation Industry LaThis financial estimated 9,500-10.500 Crore LaIn a statement on Thursday, the rating agency ICRA said on a large extent to the extent of geopolitical status and trade winds in 5,500 FY25.

At the same time, ICRA said that it expects a modest increase in 172-176 million in the 2026 fiscal in the 2026 fiscal traffic and reflects a growth of 4-6 percent compared to the previous year and that the 7-10 percent increase was lower than previous projections.

However, estimated losses for the current financial are significantly lower than those reported in FY2022 and FY2023. La21,600 crore and LaThe rating agency is 17,900 Crore, respectively.

“ICRA foresees a modest increase in 172-176 million in 2026 fiscal traffic in domestic airlines, reflecting a growth of 4-6 percent compared to the previous year, a previous 7-10 percent increase. La95-105 billion ( La9,500-10,500 CRORE) FY2026 La55 billion ( La5,500 crore) at FY2025, Icra said.

ICRA, in the first quarter of the 26 fiscal year, passenger traffic growth, flight cuts and cancellations leading to cross -border rises, as well as air -border tragedy that leads to aircraft accident tragedy, he said.

Accordingly, yields decreased by 4-5 percent in three years in three years.

Here, the Air India Boeing 787-8, operated by Tata Group on June 12, collapsed from Ahmedabad in a minute from departure and was deported to a medical college hostel and killed 260 people and killed them.

Although the effect of the accident is not shown on a sequential basis due to advanced reservations in the number of domestic passengers in June, Air India lost about 1 percent market share, while the domestic passenger traffic decreased by 2.94 percent each year has become visible in the passenger volumes.

Air India lost about 4 lakh passengers in 33.08 Lakh in 33.08 Lakh, and 36.92 Lakh flew against passengers a year ago.

“In 2025 financially, the Indian aviation industry has benefited from the improved pricing power seen at higher yields caused by healthy demand for air travel. However, the demand environment became more cautious in FY2026.” He said.

Authority, passenger traffic growth will slow down in the middle of rising aircraft deliveries, the losses will be hit essentially, he added.

The Industry saw a capacity of approximately 5 percent to reach 855 aircraft, as in March 31, 2025. Various industry players announced their large aircraft purchasing orders and according to the number of indicators, more than 1,600, which is likely to be received for the next 10 years.

ICRA said that most of them are true to replace old planes with new fuel -saving ones.