No smooth landing: ICRA sees Indian airlines' losses widening up to Rs 38,000 crore in FY27

India's aviation sector faces a grim outlook, with ICRA projecting net losses to skyrocket to ₹36,000-38,000 crore in FY27. This sharp revision stems from a weaker rupee, soaring fuel costs, higher aircraft lease rentals, and subdued passenger demand, exacerbated by the West Asian conflict. Airlines are struggling to pass on rising operational expenses, leading to a significant downgrade in traffic growth forecasts for both domestic and international routes.