7 Nov 2025, Fri

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ICRA airline loss report 2025: A bad news is coming for Indian airlines companies. Rating agency ICRA in its recent report has presented the loss figures of Indian Airlines in the financial year 2026. These figures show that next year is not going to be good for airline companies. In the report, the net financial loss of Indian airlines companies has been estimated to be between Rs 95 to 105 billion.

Due to which passengers traveling by air may also have to face problems. Air fares may increase due to increase in losses of airlines companies. Besides, facilities may also be cut. Talking about the financial year 2025, the loss of airlines companies was estimated to be Rs 55 billion. And in the very next year it has been doubled.

Domestic flights are also decreasing

There is a decline in the number of domestic travelers. Talking about the figures for the month of September last year, the number of domestic air travel was 130.3 lakh. Which has fallen to 128.5 lakh in September 2025. That is, there is a decline of 1.4 percent. Also a decrease was seen in the month of August.

However, despite the slow speed of domestic flights, the situation looks better for Indian airlines on international routes. About 29.9 lakh people had undertaken international travel in August 2025. Which is about 7.8 percent more than last year.

Fuel prices increase concern

In the released report of ICRA, it has been informed that the main reason for the increasing losses of airlines companies is their increasing operational costs. In this, aircraft fuel i.e. Aviation Turbine Fuel (ATF) has the biggest impact. A rise of 3.3 percent has been recorded in the prices of ATF in October 2025 alone.

Due to rising prices, the expense burden on airlines has increased. Apart from this, due to the continuous strengthening of the dollar, the financial burden of airlines companies is increasing. Essential goods and spare parts, air fare, all these are paid in dollars. Due to weak rupee, airlines have to pay more money.

Also read: Results of US Fed meeting will come today, will the interest rate decrease or remain the same?

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