ICRA Projects Indian Aviation Losses to Decline in 2026-27 Amid Traffic Growth

The Indian aviation industry is projected to reduce its net losses to Rs 110-120 billion in fiscal year 2026-27, down from an estimated Rs 170-180 billion in 2025-26, as domestic passenger traffic grows by 6-8% to 175-179 million. This improvement follows a subdued 2025-26 affected by operational disruptions, geopolitical tensions, and an aircraft accident. International passenger growth is also expected to rise. Despite risks from fuel prices and currency fluctuations, ICRA maintains a stable outlook with improving debt metrics and operating conditions.