India's domestic aviation industry is projected to incur a net loss of approximately Rs 17,000-18,000 crore in the current fiscal year, a significant increase from earlier estimates. Ratings agency ICRA has revised its domestic air passenger traffic growth forecast downwards to 0-3 percent for FY26. Factors contributing to this revised outlook include cross-border escalations, an Air India aircraft incident in June, and recent IndiGo flight cancellations, impacting traveler sentiment and business travel.