TBM Staff - Mumbai Losses for India’s airline industry are expected to widen to USD 400 million to USD 600 million in fiscal 2025 as higher costs outweigh a rise in passenger demand, aviation consultancy firm CAPA India said today.
CAPA India estimated losses for fiscal 2024 at USD 300 million to USD 400 million and said it sees yields – the average amount paid by a passenger to fly one for kilometre for the current year rising around 1 per cent.
Overall airline costs are expected to rise 3.8 per cent in the fiscal year 2025, the consultancy added, reports Reuters.
Despite infrastructure limitations, India is currently the world’s fastest-growing aviation market with demand surpassing the supply of jets.
India’s skies are dominated by low-cost carrier IndiGo, which holds a 60 per cent market share. The Air India group, which houses two budget carriers and two full-service carriers in Air India and Vistara, have a roughly 30 per cent share.
Newer low-cost carrier Akasa Air, and SpiceJet are the other major airlines.
CAPA India estimated domestic passenger traffic to grow to 161 million to 164 million from about 154 million. The consultancy sees international traffic growing to 75 million to 78 million.
