Mumbai: The Indian aviation sector suffered a cumulative loss of Rs5,289.73 crore in financial year 2024-25, revealed the data from the Ministry of Civil Aviation. While the data highlighted that the air traffic grew in comparison to the previous year, the sector could not report profit as it continues to navigate turbulent waters.
In a written reply to the Rajya Sabha, Minister of State for Civil Aviation Murlidhar Mohol, shared the aviation sector’s financial performance for the last three years. According to the data, the sector recorded Rs5289.73 crore loss in FY 2024-25, which saw a record jump of 472% from Rs924.39 crore loss in FY 2023-24. However, the latest loss was significantly lower than the loss of Rs18,6606 crore in FY 2022-23.
The data presented a stark contrast between a handful of profitable carriers and a majority struggling with deep deficits. It highlighted the Air India Group as the primary driver of the sector's losses, accounting for nearly double the industry's total net deficit. The group reported staggering losses that overshadowed the modest gains made by other players. Collectively, the group’s loss exceeded Rs9,808 crore, including Rs5,832 crore loss by Air India Express and Rs3,975 crore loss reported by Air India.
Similarly the country’s youngest carrier, Akasa Air, also reported a loss of over Rs1,986 crore while smaller airlines like Alliance Air and SpiceJet lost Rs691 crore and Rs55.67 crore respectively. Goa-based regional airline Fly91 also reported a loss of Rs67.6 crore.
Despite the overall industry gloom, four of the eleven tracked operators managed to stay in the black. IndiGo remained the outlier with a massive profit of Rs7,253 crore, effectively acting as the industry's primary stabiliser. Regional carriers Star Air and IndiaOne Air reported a profit of Rs68.71 crore and Rs3.3 crore respectively. Cargo carrier Blue Dart also reported a profit of Rs7 crore.
Minister Mohol also addressed the rising concerns regarding airfares, clarifying that the government does not regulate ticket prices. "In a deregulated market, airfares are determined by demand-supply dynamics and other commercial considerations.”
