Aviation sector may post ₹18,000-cr loss in FY26

THE DOMESTIC AVIATION industry is estimated to post a net loss of around ₹17,000-18,000 crore in the current fiscal year on account of a likely lower passenger traffic, among other factors, rating agency Icra said on Monday.

- PRESS TRUST OF INDIA

Earlier, the industry was projected to post a loss of ₹9,500-10,500 crore during 2025-26. Icra has also revised downwards its forecast for domestic air passenger traffic growth to 0-3% in FY26 on account of multiple factors, including Air India Boeing 787-8 plane crash in June this year and thousands of flights cancellations by IndiGo earlier this month, among others.

This revision reflects a slower-than-expected traffic growth in April-November period of FY26, which was impacted by cross-border escalations that led to flight disruptions and cancellations during the year, along with the (Air India) aircraft accident tragedy in June that made travellers hesitant at least during the period