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flag India’s aviation sector faces a ₹170–180 billion loss in 2026 due to crises, tensions, and currency issues, with growth forecasts cut.

flag India’s aviation sector faces a projected net loss of ₹170–180 billion in FY2026 due to operational disruptions, geopolitical tensions, a major aircraft accident, and a weakening rupee, leading ICRA to revise domestic passenger growth to 0–3% from 4–6%. flag International traffic growth is now forecast at 7–9%, down from 13–15%. flag A December 2025 crisis at IndiGo, involving flight duty rules, weather, and technical issues, caused around 4,500 cancellations and contributed to a 3.9% year-on-year drop in December passenger numbers. flag Despite high fuel costs—30–40% of expenses—and dollar-denominated liabilities, the domestic load factor remained strong at 94%. flag ICRA maintains a stable outlook, anticipating recovery with 6–8% growth in FY2027.

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