New Delhi, Jan. 22 -- ICRA has maintained its stable outlook on the Indian aviation industry, even as it navigates a challenging period marked by operational disruptions and revised growth projections. While the industry is expected to face a significant net loss of Rs. 170-180 billion in FY2026, the outlook remains stable because these "disruptions are expected to be temporary."

For the current fiscal year, domestic air passenger traffic is forecasted to grow by a modest 0-3 per cent, reaching approximately 165-170 million passengers. This is a downward revision from previous expectations of 4-6 per cent growth, primarily due to "cross-border escalations," an "aircraft accident tragedy in June 2025," and "the impact on business travel o...