+
India's Airline Losses to Widen Despite Passenger Surge
AVIATION & AIRPORTS

India's Airline Losses to Widen Despite Passenger Surge

Losses for India's airline industry are anticipated to increase to between $400 million and $600 million in fiscal 2025 as rising costs overshadow the growth in passenger demand, according to a report from leading aviation consultancy CAPA India released on Wednesday.

CAPA India projected losses for fiscal 2024 at $300 million to $400 million. The consultancy also forecasts a 1% rise in yields?the average fare per passenger per kilometer?for the current year.

However, airline costs are expected to increase by 3.8% in fiscal 2025, further straining the industry. Despite these financial challenges, India's aviation market remains the fastest-growing globally, with demand exceeding the available supply of aircraft.

The Indian airline market is primarily dominated by low-cost carrier IndiGo, which holds a 60% market share. The Air India group, which includes two budget airlines and two full-service carriers, accounts for roughly 30% of the market. Other key players include the new low-cost carrier Akasa Air and SpiceJet.

CAPA India also estimated that domestic passenger traffic will grow from approximately 154 million to between 161 million and 164 million. International passenger traffic is expected to rise to between 75 million and 78 million.

Losses for India's airline industry are anticipated to increase to between $400 million and $600 million in fiscal 2025 as rising costs overshadow the growth in passenger demand, according to a report from leading aviation consultancy CAPA India released on Wednesday. CAPA India projected losses for fiscal 2024 at $300 million to $400 million. The consultancy also forecasts a 1% rise in yields?the average fare per passenger per kilometer?for the current year. However, airline costs are expected to increase by 3.8% in fiscal 2025, further straining the industry. Despite these financial challenges, India's aviation market remains the fastest-growing globally, with demand exceeding the available supply of aircraft. The Indian airline market is primarily dominated by low-cost carrier IndiGo, which holds a 60% market share. The Air India group, which includes two budget airlines and two full-service carriers, accounts for roughly 30% of the market. Other key players include the new low-cost carrier Akasa Air and SpiceJet. CAPA India also estimated that domestic passenger traffic will grow from approximately 154 million to between 161 million and 164 million. International passenger traffic is expected to rise to between 75 million and 78 million.

Related Stories

Gold Stories

Next Story
Real Estate

Peninsula Land launches 19 luxury villas in Pune

Pune’s residential landscape is witnessing a shift as premium homebuyers increasingly seek larger spaces, privacy and independent living options beyond high-rise apartments. Addressing this demand, Peninsula Land Limited, part of the Ashok Piramal Group, has launched AshokVillas, an exclusive collection of 19 premium furnished villas in Gahunje, Pune.The development combines the independence of a standalone home with the convenience and security of a managed residential community. Designed around low-density horizontal living, AshokVillas offers residents private spaces while providing acces..

Next Story
Infrastructure Urban

MyBranch Expands South India Network with 16 Workspace Centres

MyBranch has expanded its South India presence with a 50,000 sq ft flexible workspace network comprising 16 centres across 14 cities in Andhra Pradesh, Karnataka, Tamil Nadu and Telangana.The expansion reflects growing demand for flexible office infrastructure as businesses establish regional teams, satellite offices and operations beyond traditional metropolitan markets. MyBranch’s network spans Bengaluru, Coimbatore, Guntur, Hanamkonda, Hubballi, Hyderabad, Madurai, Mangaluru, Rajahmundry, Salem, Tirupati, Vellore, Vijayawada and Visakhapatnam, with a large office space in Chennai also und..

Next Story
Building Material

Walplast Launches Moisture-Resistant Gypsum Plaster Solutions

Walplast Products Pvt. Ltd. has expanded its HomeSure GypEx portfolio with the launch of GypEx MoistShield and GypEx Gold, two gypsum plaster solutions designed to address moisture-prone applications and improve plastering efficiency.The new products have been developed in response to the growing demand for faster construction processes, improved material performance and consistent surface quality. The solutions aim to simplify interior plastering while addressing specific application requirements across construction environments.“Through HomeSure GypEx MoistShield and GypEx Gold, we are exp..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code