CAPA INDIA FORECASTS WIDER LOSSES OF $400-$600 MILLION FOR INDIAN, FY25

Airline costs are set to rise by 3.8% in fiscal 2025, as India's demand outpaces plane supply, leading to record yields and higher fares due to a capacity shortage, increasing the passenger load factor (PLF)

Indian airlines are proLjected to face a greater industry-wide loss in fiscal 2025, as increased costs are expected to surpass rising demand and higher ticket prices, according to a leading aviation consultancy. CAPA India has estimated the losses for the year ending March 2025 to be between $400 million and $600 million, up from the previous year's loss of $300 million to $400 million. This previous year's loss was somewhat mitigated by the record profit reported by the market leader, IndiGo.

Overall, airline costs are anticipated to rise by 3.8% in fiscal 2025, the consultancy stated, though it did not provide specifics on the cost increase from the prior year. India continues to hold the title of the world's fastest-growing aviation market, with demand outstripping the supply of planes. This dynamic has enabled the industry to report record yields as airlines charge higher fares due to a capacity shortage, resulting in more packed planes, a metric known as passenger load factor (PLF).