Icra pegs aviation losses to hit ₹10.5K cr

Hitting an Air Pocket

- NITIN KUMAR

THE DOMESTIC AVIATION industry is set to see its losses nearly double in FY2026, amid mounting challenges such as geopolitical tensions and trade headwinds. Rating agency ICRA on Thursday projected the sector's net losses to widen to ₹9,500-10,500 crore, compared with ₹5,500 crore in FY2025.

Alongside this, ICRA lowered its growth forecast for domestic air passenger traffic to 4-6% in FY26, down from an earlier estimate of 7-10%. Passenger volumes are now expected to reach 172-176 million.