IndiGo soars, rivals bleed: Data shows India’s skies are a loss-making battlezone

According to a written reply from the Ministry of Civil Aviation, IndiGo was the only major carrier to turn a profit in 2024–25, reporting earnings of ₹7,253 crore. Every other significant airline posted losses.

Air India ended the year with a ₹3,976-crore deficit, Air India Express suffered a loss of ₹5,832 crore, Akasa Air reported ₹1,986 crore in losses, and Alliance Air reported ₹691 crore.

SpiceJet remained marginally negative at ₹56 crore, while Star Air stood out as a rare exception with a modest ₹68-crore profit.

The sector’s troubles are not new. In 2022–23, Indian airlines collectively lost more than ₹18,600 crore, with Air India accounting for over half that amount. IndiGo too was in the red that year, posting a ₹316-crore loss.

The following year brought a sharp rebound for the low-cost giant, which earned ₹8,167 crore in 2023–24, but most other carriers continued to struggle. Air India recorded losses of ₹4,444 crore, and SpiceJet ₹404 crore.

The numbers highlight a paradox gripping India’s aviation market: even as demand rises, airlines continue to lose money. Domestic passenger traffic grew 7.7% in 2024–25, reaching 16.55 crore flyers.

Yet high operating costs, heavy debt burdens, expensive fuel, and an intensely competitive fare environment have kept the sector largely unprofitable.

IndiGo’s overwhelming dominance, controlling nearly 65% of the domestic market, has magnified the disruptions caused by its recent meltdown.

With thousands of flights grounded due to crew shortages and stricter flight-duty regulations, passengers have found few alternatives.

Most competing airlines are either financially fragile or lack capacity to absorb the surge, resulting in overcrowded airports, spiking fares, and growing traveller frustration.