Aviation sector faces steeper losses in FY26; passenger growth slows amid headwinds: ICRA

India's aviation sector faces increasing turbulence, with projected net losses potentially soaring to Rs 1.05 lakh crore in FY26, according to ICRA. This escalation is attributed to slowing passenger traffic growth coupled with rising aircraft deliveries. While FY25 benefited from improved pricing, demand has become cautious. Despite these challenges, losses remain below pandemic peaks.