Indian airlines report heavy losses in FY25; Air India, Air India Express worst hit

New Delhi, Aug 21 (IANS) India’s airline posted steep losses in the financial year 2024-25 (FY25), with Tata Group-owned Air India and Air India Express together accounting for the biggest share of the setback, the Parliament was informed on Thursday.

Air India and its low-cost arm Air India Express reported a combined pre-tax loss of Rs 9,568.4 crore during the financial year, Minister of State for Civil Aviation Murlidhar Mohol said in a written reply to a question in the Lok Sabha.

Of this, Air India lost Rs 3,890.2 crore, while Air India Express -- which had remained profitable for years -- slipped into a loss of Rs 5,678.2 crore.

Among other carriers, new entrant Akasa Air reported a pre-tax loss of Rs 1,983.4 crore, while SpiceJet posted a smaller loss of Rs 58.1 crore during the fiscal.

By contrast, IndiGo, the country’s largest airline, reported a pre-tax profit of Rs 7,587.5 crore during the year -- highlighting its continued dominance in the domestic market.

The provisional data also revealed the mounting debt levels of Indian carriers. Air India’s debt stood at Rs 26,879.6 crore, while IndiGo’s debt was much higher at Rs 67,088.4 crore.

Air India Express, Akasa Air and SpiceJet had debts of Rs 617.5 crore, Rs 78.5 crore and Rs 886 crore, respectively.

Mohol clarified that the financial and operational decisions of airlines, including debt restructuring, are taken by the companies themselves since the repeal of the Air Corporation Act in 1994 deregulated the sector.

He said the government plays a supporting role by creating a conducive policy environment under the National Civil Aviation Policy, 2016.

He also pointed to schemes such as UDAN, which provide financial support to airlines operating on regional routes, making them more cost-effective.

The figures come at a time when concerns have been raised about the financial health of airlines despite growth in the domestic aviation market.

Mohol told Parliament that no contraction in airline capacity has been observed in July compared to previous months, but admitted that the government continues to address challenges to promote sustainable growth in the sector.

--IANS

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