+
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.

Next Story
Real Estate

Shriram Properties Launches ‘Codename: The One’ in Bengaluru

Shriram Properties (SPL), a leading real estate developer focused on the mid-market and mid-premium segments, has announced the launch of its latest residential project under the banner “Codename: The One” in Bengaluru’s Electronic City corridor. This feature-rich gated community will offer 340 spacious 2- and 3-BHK residences, with a total saleable area of approximately 5 lakh square feet and an estimated revenue potential of over Rs 3.5 billion. The project is expected to be developed over a span of more than three years.  Strategically located near the Bommasandra Metro stat..

Next Story
Resources

India Warehousing Show 2025 Closes with Strong Global Presence

The 14th edition of the India Warehousing Show (IWS) 2025 concluded successfully at Yashobhoomi (IICC), Dwarka, drawing participation from over 300 exhibitors across 15 countries and welcoming 15,000+ visitors. Recognised as India’s leading platform for warehousing and logistics excellence, IWS 2025 offered a comprehensive display of cutting-edge automation, sustainable warehousing solutions, and next-gen supply chain technologies. The show was inaugurated by Shri Pankaj Kumar, Joint Secretary – Logistics, DPIIT, Ministry of Commerce and Industry, Government of India. In his opening a..

Next Story
Equipment

MHIET Launches 450kW Gas Cogeneration System with H₂ Co-Firing

Mitsubishi Heavy Industries Engine & Turbocharger (MHIET), part of the Mitsubishi Heavy Industries Group, has launched a new 450kW gas cogeneration system, the SGP M450, jointly developed with Toho Gas Co.,. The system supports hydrogen co-firing at up to 15 vol per cent, with no loss in performance or reliability.  The system is currently available in the Japanese market, and has been developed from the existing GS6R2 city gas engine platform. Key modifications were made to the fuel gas and engine control systems to enable hydrogen co-firing.   Verified through de..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?