Indian airlines suffer heavy losses despite rising passenger traffic
What's the story
India's aviation industry is facing a financial crisis, despite an increase in passenger numbers. The provisional data presented in Parliament paints a grim picture for several airlines. Air India and its low-cost subsidiary Air India Express together posted a pre-tax loss of ₹9,568.4 crore in FY25, according to Minister of State for Civil Aviation Murlidhar Mohol's written reply to the Lok Sabha.
Financial struggles
Other loss-making airlines in FY25
Tata Group-owned Air India alone reported a pre-tax loss of ₹3,890.2 crore. Its low-cost arm, Air India Express, recorded a loss of ₹5,678.2 crore for the fiscal year 2025. Akasa Air and SpiceJet also joined the list of loss-making airlines with pre-tax losses of ₹1,983.4 crore and ₹58.1 crore respectively in FY25.
Profit amid loss
IndiGo's pre-tax profit for FY25
Despite the financial woes plaguing other airlines, market leader IndiGo managed to stay afloat with a pre-tax profit of ₹7,587.5 crore for the fiscal year. The stark contrast between IndiGo's profitability and the losses incurred by other carriers highlights the challenges faced by India's aviation sector in maintaining financial stability amid rising operational costs and mounting debt burdens.
Debt impact
Debt burden of Indian carriers
The debt burden continues to weigh heavily on Indian carriers. Air India's debt stood at ₹26,879.6 crore, while IndiGo's debt was significantly higher at ₹67,088.4 crore. Air India Express carried a debt of ₹617.5 crore, SpiceJet's debt was ₹886 crore, and Akasa Air reported a debt of ₹78.5 crore for FY25.
Policy response
Government's role in aviation sector
Mohol stressed that since the deregulation of India's aviation industry in 1994, financial and operational decisions are left to be managed by respective airlines based on commercial considerations. He reiterated the government's commitment to creating a "conducive ecosystem" for the sector under the National Civil Aviation Policy 2016. The UDAN scheme is one such initiative aimed at boosting regional connectivity and supporting struggling airlines.