ICRA downgrades India's aviation sector outlook to negative
Business
India's aviation industry just got a reality check: ICRA has downgraded its outlook to negative.
Blame it on airspace disruptions from West Asia tensions, a weakening rupee, and rising fuel prices.
Domestic air travel growth could stall at just 0% to 3% for FY2026, while international flights might see slightly better growth at 7% to 9%.
IndiGo is adding a fuel surcharge to cope with costs but warns that higher fares could keep some travelers grounded.
Domestic air travel growth to stall
India's airlines brace for a bumpy ride.
ICRA expects domestic air travel growth to stall at 0% to 3% for FY2026, while international flights might see 7% to 9%.