New Delhi: Most Indian carriers have been making losses for the past three years, and even market leader IndiGo, whose operational meltdown caused utter chaos at airports across the country, has seen a sharp decline in profits.
According to a civil aviation ministry’s response in Lok Sabha Thursday, IndiGo’s profit declined to Rs 7,253.3 crore in Financial Year 2024–25 from Rs 8,167.49 crore the previous FY.
The data presented as part of the written response shows that 11 out of 14 scheduled Indian airlines, which operate regular and published flights at set times and dates, reported losses in FY2023-24, reflecting pressures in the broader aviation sector. The data for 2024-25 was not available for all the airlines.
IndiGo, which saw an unprecedented number of cancellations and rescheduling from the beginning of this month, was among the profit-making airlines. The disruptions, which IndiGo blamed on “misjudgement and planning gaps in implementing” new government rules on limiting pilots’ and crew members’ flying hours, caused panic and chaos at airports across the country, inconveniencing passengers.
The Directorate General of Civil Aviation issued a series of instructions to IndiGo, including asking the airlines to reduce the number of flights and seeking an explanation from its chief executive officer.
According to the data presented in the House by Minister of State for Civil Aviation Murlidhar Mohol, the aviation sector’s combined financial performance has deteriorated significantly. While Indian carriers reported a total net loss of Rs 924.40 crore in FY2023–24, the figure widened to Rs 5,289.70 crore in FY2024–25.
Profits and losses are determined after accounting for income taxes and extraordinary items, which include significant gains or losses from events that are outside a company’s normal business activities.
Air India, Akasa Air, Alliance Air, and SpiceJet were among the major loss-making carriers. Air India alone posted a loss of Rs 3,975.75 crore, while Akasa Air reported Rs 1,986.25 crore in losses during FY2024-25.
Only a handful of airlines – including IndiGo, Blue Dart, Star Air, and IndiaOne Air – managed to remain profitable in the last fiscal.
Asked if the government has drawn any plan to curb losses or strengthen sector viability, the minister of state in the reply stated, “With the repeal of the Air Corporation Act in March 1994, the Indian domestic aviation industry has been deregulated. The financial and operational decisions, including resource mobilization and debt restructuring, are managed by the respective airlines based on commercial considerations.”
While most airlines incur losses, India’s domestic aviation market continues to register strong passenger numbers.
As per the minister’s response, domestic carriers transported 16.55 crore passengers in FY2024–25, witnessing a 7.7 percent growth from the previous fiscal. Even in FY2025-26, provisional data up to September shows passenger numbers have already crossed 8.01 crore.
The month-wise data for FY2025-26 suggests that while traffic volume reduced slightly in July, August, and September compared to the corresponding months the previous year, the overall trend remains upward. The month of April 2025 saw the highest passenger volume in the current fiscal, with 1.43 crore people travelling.
(Edited by Ajeet Tiwari)
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