New Delhi, Feb. 21 -- The Indian aviation industry is expected to report a net loss of Rs 2,000-3,000 crore in both FY25 and FY26, according to a report by ICRA. This comes after the sector posted a net profit of approximately Rs 1,600 crore in FY24.

The losses are primarily attributed to pressure on ticket prices as airlines aim to maintain healthy passenger load factors (PLF) despite high aviation turbine fuel (ATF) prices. The industry is also expected to see a slow recovery in earnings due to its high fixed costs.

ICRA said "the Indian aviation industry to report a net loss of Rs. 20-30 billion in FY2025 and FY2026 compared to a net profit of ~Rs. 16 billion in FY2024 due to anticipated pressure on yields"

Another major challenge f...