Rising costs could squeeze profits for Indian airlines, says JPMorgan
Indian airlines are flying more passengers again—domestic travel is up 4% and international routes are even busier with 8% growth.
But a jump in jet fuel prices and a weaker rupee might chip away at those profits, according to a new JPMorgan report.
IndiGo still rules the skies
IndiGo keeps its lead with over 65% of the domestic market as of October 2025.
While international ticket prices have climbed 13%, local fares haven't really budged—or have even dropped on some major routes.
Higher costs may cancel out gains
Jet fuel is now 6% pricier than last quarter, and the rupee has dipped by 2%.
JPMorgan warns that even small hikes here can hit profits hard: every 1% rise in fuel could cut pre-tax profit by about 3%, while a similar dip in the rupee could shave off up to 6%.
So, despite more people flying, airlines might not see much extra cash in the near future.