Indian Aviation Faces ₹18,000 Cr Loss in FY26: ICRA Revises Forecast Amid Challenges

• ICRA projects Indian aviation industry to incur ₹17,000-18,000 crore net loss in FY26, up from earlier ₹9,500-10,500 crore.
• Revised forecast due to lower passenger traffic growth, now 0-3% for domestic and 7-9% for international in FY26.
• Factors include Air India Boeing 787-8 crash, IndiGo flight cancellations (4,500 flights), and cross-border escalations.
• Rupee depreciation against USD also contributes to higher foreign exchange losses for the industry.
• Domestic air passenger traffic for April-November 2025 grew 2.2% YoY, reaching 10.96 crore.

Why It Matters: Indian aviation faces significantly higher losses in FY26 due to multiple operational and economic headwinds.