Indian aviation industry to report net loss of ₹30 billion in FY26: ICRA
New Delhi [India]July 12 (Memorial): India is expected to record a clear loss in the range of the aviation industry LaAccording to the Credit Rating company ICRA, 2025-26 in the 2025-26 fiscal year 2025-26 (FY26) fiscal year (26 financial years).
In a report, the company said that these losses are expected to continue compared to a clear profit. LaWhile the ongoing aviation turbine fuel (ATF) prices are trying to protect sufficient passenger load factors (PLF), 16 billion FY2024 due to the expected pressure on the efficiency.
In the report, although the demand for air travel remains intact, it is likely that the airlines will significantly increase ticket prices due to competitive pressures and price sensitivity in the domestic market. This is expected to turn into profitability when combined with more expensive fuel.
In addition to financial difficulties, it is likely to increase interest costs due to increased lease obligations because several airlines have planned aircraft deliveries. Increased debt burden is expected to increase financing costs and compress margins further.
Despite these difficulties, the losses envisaged for the 26 fiscal year are a significant development compared to the great mishaps of the past. Industry has made surprising net losses La235 billion MY22 and LaIn 23 financial years, which are largely directed by the Covid-19 deductions and fuel cost volatility, 174 billion.
However, financial flexibility is gradually developing. The rate of interest rates, which is a fundamental indicator of the debt service ability of the sector, is expected to vary between 1.5 and 2.0 times in 26 financial years, which shows that the relatively stable debt service capacity is even in the midst of the lower line.
For June 2025, domestic airline traffic is estimated to be 5.1 percent higher in June 2024.
However, he witnessed a sequential marginal decrease by 1.3 percent. The capacity deployment of the airlines in June 2025 was 4.9 percent higher than June 2024; However, it was 2.3 percent lower than May 2025.
For the quarter FY2026 (April-June 2025), domestic airline traffic was 422.4 Lakh and reflected a 5.1 percent growth.
For May 2025, international passenger traffic for Indian carriers was 29.7 Lakh, a growth of 7.3 percent. However, due to geopolitical head winds, it remained 7.9 percent on a sequential basis.
For 2m FY2026, international passenger traffic for Indian carriers stopped at 59.8 Lakh, a 12.1 percent growth.
For FY2025 (April 2024-March 2025), domestic airline traffic was around 1,653.8 Lakh, a 7.6 percent growth.
In addition, for FY2025, international passenger traffic for Indian carriers took place in 338.6 Lakh, a 14.1 percent growth. (MOMENT)
