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Credit agency reports India’s airlines are losing money despite record air traffic demand
December 5th 2024
India’s independent investment information and credit rating agency, ICRA, is predicting the country’s aviation industry will record net losses of Rs 20 billion to 30 billion (US$230 million to US$350 million) in the current year that will continue into fiscal 2026. Read More » At the same time, ICRA forecasts domestic air passenger traffic will increase by 7%-10% year-on-year, climbing to 164 million to 170 million air travellers. International traffic will increase at an even faster pace, to 15%-20% more passengers carried or 34 million to 36 million flyers, by fiscal 2025 year-end, the agency said. “The Indian aviation sector is experiencing a paradox: record passenger growth and continuing financial issues. In spite of an increase in passenger traffic, airlines are struggling due to high operating costs, suppressed ticket prices and supply chain challenges,” ICRA told India’s The Economic Times.
