India's aviation sector is staring at even deeper losses this financial year, with ratings agency ICRA sharply revising its FY27 net loss estimate to ₹36,000-38,000 crore, citing a weakening rupee, elevated aviation turbine fuel (ATF) prices, higher aircraft lease rentals and softer passenger demand amid the West Asian conflict.
The revised estimate marks a significant deterioration from ICRA's earlier forecast of ₹11,000-12,000 crore in losses for FY27, as rising operating costs are expected to outpace airlines' ability to pass them on through higher fares.
