As passengers continue to grapple with flight cancellations and delays triggered by IndiGo's operational meltdown, government data tabled in the Lok Sabha on Thursday has underscored a harsh reality: India's aviation sector is largely a loss-making business currently.
According to the Ministry of Civil Aviation's written reply, IndiGo was the only major airline to post a profit in financial year 2024-25, earning Rs 7,253 crore. In contrast, Air India reported a loss of Rs 3,976 crore, Air India Express Rs 5,832 crore, Akasa Air Rs 1,986 crore, and Alliance Air Rs 691 crore. SpiceJet also remained in the red with a Rs 56-crore loss, while Star Air, a small operation, was a rare exception, posting a modest Rs 68-crore profit.
The financial strain isn't new. In 2022-23, airlines in India posted a collective loss of over Rs 18,600 crore, with Air India alone losing Rs 11,387 crore, and IndiGo reporting a Rs 316-crore deficit. However, the next financial year saw a sharp turnaround for IndiGo as it earned a profit of Rs 8,167, though most other carriers continued to bleed. Air India lost Rs 4,444 crore and SpiceJet Rs 404 crore in 2023-24.
Demand Up, Losses Mount
The data explains why new players hesitate to enter the market despite surging demand. Domestic passenger traffic rose 7.7% in financial year 2024-25 to 16.55 crore flyers, yet most carriers have large amounts of debt and are battling high operating costs.
IndiGo's dominance - commanding nearly 65% of the domestic market share - has amplified the impact of its recent crisis, where thousands of flights were cancelled due to crew shortages and new duty-time norms. With rivals hurting financially, passengers have few alternatives, leading to overcrowded airports, soaring fares, and mounting frustration.
