Airlines' losses to double in FY26: Report
India's airlines are heading for tough times, with losses expected to hit ₹9,500-10,500 crore in FY2026—almost twice FY2025's numbers.
Slower passenger growth and global tensions are making it harder for airlines to bounce back, even as fleets keep expanding.
Slower passenger growth will hurt yields
ICRA has cut its forecast for domestic air travel growth this year to just 4-6%, down from the earlier 7-10%.
Flight disruptions from cross-border issues, a June 2025 crash that shook traveler confidence, and a longer monsoon have all played a part.
AI's loss of passengers has ripple effect
Air India lost about four lakh passengers in July 2025 alone, shrinking its market share.
With ticket prices (yields) also dropping by 4-5%, airlines across the board are feeling the squeeze.
Fleet expansion continues despite challenges
The industry added more planes—fleet size rose 5% to reach 855 aircraft by March 2025—but over 1,600 new planes are still waiting to be delivered over the next decade.