Indian airlines may lose up to ₹38,000 crore this fiscal as costs pile up

Indian airlines may lose up to ₹38,000 crore this fiscal as costs pile up, according to ICRA’s revised forecasts for FY27. The ratings agency projects industry net losses of ₹36,000–₹38,000 crore, sharply higher than its previous estimate of ₹11,000–₹12,000 crore for FY27. ICRA also increased its FY26 loss projection to ₹32,000–₹34,000 crore, nearly double its earlier ₹17,000–₹18,000 crore range. The update cites rising operating costs and weaker passenger demand, with the weaker rupee, elevated aviation turbine fuel (ATF) prices, and higher aircraft lease rentals weighing on carriers. ICRA said airlines have limited ability to offset costs through fare hikes. It expects West Asia conflict disruptions to keep passenger growth subdued, trimming domestic growth to 3–6% for FY27 and international growth to 0–3%, after a 39% year-on-year international decline in April 2026.