Indian aviation set for bigger losses in 2026, says ICRA

Business Dec 29, 2025

India's domestic airlines are expected to lose a whopping ₹17,000-18,000 crore in FY26—almost double earlier estimates.
The main reasons? Fewer people flying and higher costs have hit the industry hard.

What's behind the numbers?

Passenger traffic growth has slowed way down, with forecasts now at just 0-3% instead of the earlier 4-6%.
IndiGo's mass flight cancelations in December (over 4,500 flights) made things worse by shaking traveler confidence.
Plus, a weaker rupee and ongoing global issues mean international travel isn't bouncing back as quickly either.