National Times Bureau :- Air travel in India may soon become more expensive as the country’s airlines face mounting financial pressure. According to recent reports, Indian carriers are collectively staring at losses of nearly ₹10,500 crore in the current fiscal year, driven by soaring fuel prices, intense market competition, and rising operational costs.
A report by credit rating agency ICRA estimates that the net losses of Indian airlines in FY2026 could range between ₹9,500 crore and ₹10,500 crore—almost double the estimated ₹5,500 crore loss in FY2025. Experts suggest that to offset these mounting losses, airlines may increase ticket fares, which would put additional strain on passengers’ wallets.
Adding to the concern, domestic air traffic has seen a slight dip. Passenger numbers fell from 13.03 million in September 2024 to 12.85 million in September 2025—a decline of around 1.4%. Although domestic demand appears to be softening, international routes remain strong, with a 7.8% year-on-year increase in overseas travelers recorded in August 2025.
Aviation turbine fuel (ATF) prices—one of the biggest cost components for airlines—rose by 3.3% in October 2025 alone. Combined with a strengthening U.S. dollar, which increases the cost of aircraft leases, parts, and other expenses paid in foreign currency, Indian airlines are under mounting financial strain.
Analysts warn that unless fuel prices stabilize and the rupee strengthens, airlines may have no choice but to raise fares, making air travel less affordable for millions of Indian flyers.
