ICRA lowers FY26 growth forecast for aviation sector

Business Sep 26, 2025

India's aviation sector just got a reality check—ICRA has lowered its FY26 growth forecast to 4-6%, down from the earlier 7-10%.
The reason? Domestic passenger traffic barely budged this year, inching up from 131.3 lakh in August 2024 to just 131.7 lakh in August 2025.

Airlines are grappling with crew shortages, global tensions

ICRA now expects airlines could lose ₹95,000-1,05,000 crore in FY26, almost twice last year's losses.
The industry is dealing with more planes being delivered even as demand slows, higher lease costs, and supply-chain headaches—over 130 aircraft were grounded as of March.
Crew shortages and global tensions are still making things tricky for airlines trying to keep flights running smoothly.