Indian aviation set to grow by 10% by FY2026, but financial losses likely to persist: ICRA report

India's aviation sector anticipates continued growth in FY2026, with domestic air passenger traffic projected to rise by 7–10%, reaching 175-181 million. Despite this surge and a 16.8% recovery above pre-pandemic levels, the industry is expected to face net losses of Rs 20,000–30,000 crore due to high operating costs, including aviation fuel prices and lease obligations.

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