Flying Higher, Earning Less—India’s Airlines Brace for a Mixed FY26

India’s domestic aviation sector is expected to grow 7–10% in FY2026, reaching 175–181 million passengers, according to ICRA’s latest outlook. This follows a 7.6% rise in FY2025, which saw traffic hit 165.4 million, surpassing preCovid levels by nearly 17%. However, despite the passenger surge, the industry is projected to post net losses of ₹20,000–30,000 crore in FY2026.

 

Key Highlights:

While demand remains strong, the sector’s financial health hinges on cost control, fleet availability, and pricing discipline. The skies may be busy—but the bottom line is still in recovery mode.

 

Sources: Business Today, The Tribune, Economic Times