By R. Rakendu
In the financial year 2025-2026, India’s domestic aviation industry is estimated to lose 2,000 crore- 3,000 crore rupees. Investment Information and Credit Rating Agency of India Limited (ICRA), stated that the reason for this loss will be disruption in supply chain and challenges due to engine problems, citing the data collected by them. According to ICRA, this might also affect the industry in 2026-2027 financial year.
In December, the number of passengers who travelled in domestic flights were estimated to be around one crore fifty-three lakh. Compared to the month of November, the number of people who travelled using domestic airlines is showing a hike of 7.3 per cent during December.
This year, the industry was able to make a huge profit, surpassing their profits gained during the pre-covid period. The pricing was also high during this financial year.
ICRA claims that they will look into the matters concerning this situation, through research and nothing the expectations of the passengers. A 7 to 10 per cent reduction in the number of people using domestic airlines are expected to happen during the next financial year as per ICRA’s study. The report that they produced said, “The yields are also likely to be under pressure, as airline strive to maintain adequate passenger load factor (PLF).”
A research conducted by the Investment Information and Credit Rating Agency of India Limited has predicted that in this financial year, the domestic airline industry will have a net loss of over 20 billion rupees. This will have a negative impact on their business. As said by ICRA, the industry has begun to see a decrease in the number of passengers in the first half of January 2025, further adding a clarity to their prediction.