Indian Carriers to Reduce Losses Through Pricing Power and Stronger Traffic — India Report
Skift Take
The Indian aviation industry is expected to bring down its losses to INR 20-30 billion ($236-354 million) during the 2025 and 2026 fiscal years, according to credit rating agency ICRA. The reduction in losses will be supported by improved pricing power of the airlines, said Kinjal Shah, senior vice president and co-group head at ICRA.
"The spread between revenue per available seat kilometer and cost per available seat kilometer (RASK-CASK) saw some moderation in the first half this year due to higher fuel costs and overall increased costs amid grounding of aircraft," Shah said. "The same is expected to pick up in the second half amid healthy passenger traffic."
Data We Love: The credit rating agency estimated that domestic air passenger traffic in the current fiscal year will reach 164-170 million, indicating a 7-10% year-on-year growth.
Between April and September, 79.3 million domestic passengers traveled through air, over 5% more than last year. However, the air traffic was impacted by severe heat waves and other weather-related disruptions.
Indian airlines recorded a growth of more than 16% in international passenger traffic during this period. ICRA expects this momentum to continue in the sec
