India’s airline industry closed FY25 with a stark financial divide, according to data tabled in Parliament. Tata Group-owned carriers were the biggest losers, with Air India posting a pre-tax loss of INR 3,890.2 crore and Air India Express slipping deep into the red with INR 5,678.2 crore, together amounting to INR 9,568.4 crore. New entrant Akasa Air also recorded a loss of INR 1,983.4 crore, while SpiceJet reported a smaller loss of INR 58.1 crore. In contrast, market leader IndiGo showcased strong operational resilience, registering a record profit of INR 7,587.5 crore despite carrying the highest debt burden of INR 67,088.4 crore. Debt levels across the sector remain high, with Air India at INR 26,879.6 crore, Air India Express at INR 617.5 crore, SpiceJet at INR 886 crore, and Akasa Air at INR 78.5 crore. While operational challenges like delays and cancellations continue to affect carriers such as Air India, domestic air travel demand remains strong, with no reduction in airline capacity as of July 2025. The government reiterated its commitment to sustainable aviation growth through policies like UDAN, though strategic decisions rest with airlines. Analysts warn that cost control, fleet modernization, and improved service quality are essential for carriers to survive in India’s highly competitive aviation market.
