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Indian aviation industry's net financial losses to increase to Rs 95-105 billion in FY2026, credit rating agency ICRA said in a release. The agency expects net losses to widen more than Rs 100 billion in FY2026, compared with Rs 55 billion in FY2025. The increase is attributed to slower traffic growth amid high aircraft deliveries and rising operational costs.

According to the release, a major cost driver continues to be aviation turbine fuel (ATF), which rose 3.3 per cent sequentially in October 2025. Fuel prices averaged Rs 95,181 per kilolitre in FY2025, lower than last year, but volatility persists due to exchange rate fluctuations. Fuel accounts for 30-40 per cent of airlines' operating costs, while a large share of expense

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