Indian aviation set to grow by 10% by FY2026, but financial losses likely to persist: ICRA report
India's aviation sector anticipates continued growth in FY2026, with domestic air passenger traffic projected to rise by 7–10%, reaching 175-181 million. Despite this surge and a 16.8% recovery above pre-pandemic levels, the industry is expected to face net losses of Rs 20,000–30,000 crore due to high operating costs, including aviation fuel prices and lease obligations.
India's aviation sector anticipates continued growth in FY2026, with domestic air passenger traffic projected to rise by 7–10%, reaching 175-181 million. Despite this surge and a 16.8% recovery above pre-pandemic levels, the industry is expected to face net losses of Rs 20,000–30,000 crore due to high operating costs, including aviation fuel prices and lease obligations.
