India’s aviation industry continues to face turbulence, with fresh government data showing heavy financial losses for most airlines, barring IndiGo. Tata Group-owned Air India and Air India Express reported a staggering combined pre-tax loss of ₹9,568.4 crore in FY25, according to figures shared in Parliament by Minister of State for Civil Aviation Murlidhar Mohol.

Heavy Losses for Tata-Owned Carriers

Breaking down the numbers, Air India recorded a pre-tax loss of ₹3,890.2 crore, while its budget arm Air India Express posted a loss of ₹5,678.2 crore. This is significant as Air India Express was historically a profitable venture, even when its full-service counterpart was struggling. The data highlights the challenges faced by Tata Group, which acquired both airlines in January 2022, in turning them around.

IndiGo Flies High, Others Struggle

Among India’s carriers, IndiGo stood out with a pre-tax profit of ₹7,587.5 crore in FY25. The airline has consistently managed costs and maintained market leadership, helping it withstand rising fuel expenses and global uncertainties.
In contrast, Akasa Air reported a pre-tax loss of ₹1,983.4 crore, while SpiceJet posted a smaller loss of ₹58.1 crore, reflecting the fragile financial health of newer and smaller carriers.

Debt Burdens Weigh on Airlines

The written reply in the Lok Sabha also shed light on airline debt levels. Air India’s debt stood at ₹26,879.6 crore, while IndiGo carried the heaviest load at ₹67,088.4 crore.
For others, Air India Express had ₹617.5 crore in debt, Akasa Air ₹78.5 crore, and SpiceJet ₹886 crore. The data shows that debt restructuring remains a critical challenge for India’s aviation sector.

Government’s Stand: Commercial Decisions Drive Outcomes

MoS Civil Aviation Murlidhar Mohol clarified that the government does not intervene in airline operations, noting that since the repeal of the Air Corporation Act in 1994, India’s aviation sector is fully deregulated. Financial and operational decisions—including resource mobilisation and debt management—are now left entirely to airlines based on commercial considerations.

Summary

Tata-owned Air India and Air India Express reported a combined loss of ₹9,568.4 crore in FY25, while IndiGo posted a ₹7,587.5 crore profit, government data showed. SpiceJet and Akasa Air also incurred losses. Debt levels remain high across airlines, with IndiGo topping the list. The aviation ministry reiterated that airlines’ financial strategies are shaped by commercial, not regulatory, decisions.