Turbulence ahead! Airlines may lose Rs 105 billion in FY26; ATF prices, slow traffic hurt margins

India’s aviation sector is projected to see net losses widen to Rs 95-105 billion in FY2026, up from Rs 55,000 crore in FY2025, due to slower passenger growth and rising operational costs. Despite a stable outlook, ICRA has lowered its FY2026 growth forecast to 4-6% amid concerns over flight disruptions and travel hesitancy.