NEW DELHI: The Indian aviation industry has suffered losses amounting to Rs 24,819 crore during the financial years from 2022 to 2025, the government informed the Rajya Sabha. The break-up of the losses was provided by Minister of State for Civil Aviation Murlidhar Mohol in a written reply to Parliament.
The written response came after an unstarred question raised by MP Priyanka Chaturvedi of Shiv Sena (UBT), who sought details on the losses incurred by the aviation sector and asked about the possible losses for the financial year 2026 as well as the policy failures responsible for them. She also referred to a forecast by the Investment Information and Credit Rating Agency which estimated that the sector could incur losses between Rs 9,500 crore and Rs 10,500 crore in FY2026.
Providing details of the losses reported by scheduled Indian airline operators over the past three financial years, Mohol said the sector recorded a loss of Rs 18,606.78 crore in 2022-2023, Rs 924.39 crore in 2023-2024 and a provisional loss of Rs 5,289.73 crore in 2024-2025. He said the figures were furnished by the airlines themselves.
The Minister stated, “With the repeal of the Air Corporations Act in March 1994, the Indian domestic aviation industry has been deregulated. The financial and operational decisions, including resource mobilisation and debt restructuring, are managed by the respective airlines based on commercial considerations.”
He said several factors influence airline ticket prices, including seat occupancy, fuel costs, aircraft capacity and seasonal demand.
“Various determinants such as current seat occupancy, fuel costs, aircraft capacity, seasonal fluctuations and other relevant factors significantly impact airline ticket pricing,” he added.
Mohol also said that the financial and operational functioning of airlines is monitored under existing regulatory and statutory frameworks. Scheduled airlines must comply with financial and operational requirements under the Aircraft Rules, 1937 and the Civil Aviation Requirements issued by the Directorate General of Civil Aviation (DGCA).
He further pointed out that the price of Aviation Turbine Fuel (ATF) has been market-determined since April 1, 2001, with Public Sector Oil Marketing Companies taking pricing decisions based on international product prices and market conditions.
“Presently, ATF attracts a rate of 11% central excise duty. Whereas, the central excise duty is only 2% for Regional Connectivity Scheme (RCS) flights.” Different rates of value added tax (VAT) are levied on ATF by the States and Union Territories, he added.