Crisis-Hit IndiGo Only Major Airline Making Profits, says Centre
IndiGo lone profit-maker as sector struggles despite rising passenger demand
- Govt data shows most Indian airlines incurred heavy losses in FY25
- IndiGo only major carrier to post profit; Air India Express reported biggest loss
- Sector continues to face high debt, operating costs, and severe financial stress
- IndiGo’s recent meltdown highlights fragile aviation ecosystem
GG New Bureau
New Delhi, 11th Dec: India’s aviation sector is facing a severe financial crunch, with government data tabled in the Lok Sabha on Thursday showing that nearly all major airlines operated at a loss in financial year 2024–25. IndiGo emerged as the only profitable carrier, reporting earnings of ₹7,253 crore, even as competitors continued to struggle.
According to the Ministry of Civil Aviation, Air India posted a loss of ₹3,976 crore, Air India Express ₹5,832 crore, Akasa Air ₹1,986 crore, and Alliance Air ₹691 crore. SpiceJet also remained in the red with a ₹56-crore loss, while Star Air was the sole smaller carrier to post a profit of ₹68 crore.
The data reflects a persistent trend. In 2022–23, airlines collectively reported losses exceeding ₹18,600 crore, with Air India alone accounting for ₹11,387 crore. IndiGo, which incurred a ₹316-crore loss that year, rebounded strongly the next year with a profit of ₹8,167 crore, but most carriers continued to bleed financially.
Despite a 7.7% rise in domestic passenger traffic in FY25 — reaching 16.55 crore flyers — the sector remains burdened by high operating costs, mounting debt and volatile fuel prices. These pressures have deterred new entrants even as demand grows.
IndiGo’s recent operational meltdown, which resulted in thousands of flight cancellations due to crew shortages and revised duty-time norms, has exposed the industry’s fragility. With IndiGo commanding nearly 65% of the domestic market, its disruptions left passengers with few alternatives as financially strained rivals struggled to absorb the impact.
The latest figures reinforce concerns that India’s fast-growing aviation market continues to rest on an unstable financial foundation, where the failure of one major carrier can trigger nationwide turbulence.
