Official data indicates the cumulative loss of Indian airlines stood at Rs 5,289.73 crore in the last financial year, with Air India Group alone accounting for Rs 9,808.12 crore of the total loss.
Air India Reporting The Largest Loss
Air India appears to be on the track to record its largest annual loss since the Tata Group took control, as per the media report.
All is not bad as 4 out of 11 operators had reported profit including the IndiGo, Blue Dart, Star Air and IndiaOne Air.
This data came into picture as it was provided as part of a written reply to the Rajya Sabha on Monday by Minister of State for Civil Aviation Murlidhar Mohol.
As per this data, Air India and Air India Express recorded a loss of Rs 3,975.75 crore and Rs 5,832.37 crore, respectively.
Similarly, Akasa Air also reported a loss of Rs 1,986.25 crore for the FY 2024-25.
Moving ahead, the State-owned Alliance Air’s loss was at Rs 691.12 crore and SpiceJet’s losses stood at Rs 55.67 crore in the last fiscal.
Besides these, the list of other loss-making operators include Fly91 (Rs 67.65 crore) and Quikjet Cargo (Rs 1.34 crore).
Contrary to this, IndiGo raked in a profit of Rs 7,253.30 crore and the other profitable entities includes Star Air (Rs 68.75 crore), Blue Dart (Rs 0.71 crore) and IndiaOne Air (Rs 0.33 crore).
Please note that all these figures are after considering extraordinary items.
Why Would This Happen?
In a deregulated aviation market, airfares are neither fixed nor regulated by the government and are determined by airlines based on demand-supply dynamics and other commercial considerations, the Union minister said in the reply to CPI-M member John Brittas.
In the meantime, India’s aviation sector faces urgent challenges as operational failures and safety incidents threaten IndiGo and Air India.
Among other issues, declining profits and rising passenger dissatisfaction are the issues that the industry must address systemic vulnerabilities ahead of the entry of new regional players.
The airline would cap off a year marked by a deadly crash and prolonged airspace disruptions.
This report further highlights that the carrier is expected to post a loss of at least INR 150 billion ($1.6 billion) for the fiscal year ending March 31, 2026.
Unfortunately this reversal erases much of the progress the airline had made toward stabilizing its finances after years of losses.
