Domestic aviation sector’s loss likely to widen to ₹9,500-10,500 crore in current financial year

In October, domestic air traffic is estimated at 1.43 crore passengers, up 4.5 per cent year-on-year and 12.9 per cent compared with September

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The domestic aviation industry's net losses are expected to nearly double to Rs 9,500-10,500 crore in FY26, driven by slowing passenger growth and rising costs linked to new aircraft deliveries, according to a report by Icra released on Tuesday.

Despite maintaining a stable outlook and projecting 4-6 per cent domestic passenger traffic growth for FY26 the sector’s financial performance will remain under pressure.