Air India and Air India Express combined posted a loss before tax of ₹9,568.4 crore in FY25, according to data provided by Minister of State for Civil Aviation Murlidhar Mohol in a written response to the Lok Sabha.
Despite a consistent increase in passenger demand, India’s aviation industry is nevertheless struggling financially. For several airlines, the preliminary data presented to Parliament paints a concerning picture.
According to data shared by Minister of State for Civil Aviation Murlidhar Mohol in a written reply to the Lok Sabha, Air India and Air India Express together reported a loss before tax of ₹9,568.4 crore in FY25. Tata Group-owned Air India registered a pre-tax loss of ₹3,890.2 crore, while its low-cost arm Air India Express, recorded a loss of ₹5,678.2 crore.
Among other airlines, SpiceJet had a loss of ₹58.1 crore in FY25, while Akasa Air reported a pre-tax loss of ₹1,983.4 crore. However, with a pre-tax profit of ₹7,587.5 crore for the year, market leader IndiGo continued to be the only airline that turned a profit.
Indian airlines are still significantly burdened by debt. According to the data, Air India owed ₹26,879.6 crore, IndiGo owed ₹67,088.4 crore, Air India Express owed ₹617.5 crore, SpiceJet owed ₹886 crore, and Akasa Air owed ₹78.5 crore.
In his response, Mohol emphasized that India’s aviation sector has been deregulated since the Air Corporation Act was repealed in 1994, allowing “the respective airlines to manage financial and operational decisions, including resource mobilization and debt restructuring, based on commercial considerations.”
He went on to say that through programs like the UDAN scheme to promote regional connectivity, the government is still working to establish a “conducive ecosystem” for the industry under the National Civil Aviation Policy of 2016.
The numbers demonstrate the structural issues that Indian aviation is facing, which are mostly caused by rising operating expenses. The losses highlight how difficult it will be for airlines to earn a profit even with aggressive plans for development and restructuring.
