NEW DELHI— India’s aviation sector posted significant financial losses in the 2024–25 fiscal year, with Tata Group carriers Air India and Air India Express recording the steepest declines, Parliament was told on Thursday.
According to data presented by Minister of State for Civil Aviation Murlidhar Mohol in a written reply to the Lok Sabha, Air India and its low-cost subsidiary Air India Express together reported a combined pre-tax loss of Rs 9,568.4 crore. Air India lost Rs 3,890.2 crore, while Air India Express — profitable for several years until now — slipped to a loss of Rs 5,678.2 crore.
Among other airlines, Akasa Air, a recent entrant to the market, reported a pre-tax loss of Rs 1,983.4 crore, while budget carrier SpiceJet posted a much smaller loss of Rs 58.1 crore.
In sharp contrast, IndiGo, the country’s largest airline by market share, turned a pre-tax profit of Rs 7,587.5 crore, reinforcing its dominant position in the domestic market.
The figures also underscored the mounting debt burdens across the industry. Air India carried debt of Rs 26,879.6 crore, while IndiGo’s debt was substantially higher at Rs 67,088.4 crore. Air India Express, Akasa Air, and SpiceJet reported debts of Rs 617.5 crore, Rs 78.5 crore, and Rs 886 crore, respectively.
Mohol noted that since the repeal of the Air Corporation Act in 1994, financial and operational decisions — including debt restructuring — are the responsibility of the airlines themselves. The government, he said, plays a supportive role by providing a favorable policy environment under the National Civil Aviation Policy, 2016.
He also highlighted the UDAN regional connectivity scheme, which provides subsidies to airlines for operating flights on underserved routes, making them more affordable and sustainable.
The losses come at a time when India’s domestic aviation market continues to expand, raising concerns about the sector’s financial stability despite strong passenger demand. Mohol assured Parliament that no contraction in airline capacity was observed in July compared to previous months, but acknowledged that the government remains focused on addressing challenges to ensure long-term growth in the industry. (Source: IANS)
