Air India and Air India Express incurred a combined pre-tax loss of ₹9,568.4 crore in fiscal year 2025, while IndiGo reported a profit of ₹7,587.5 crore. Akasa Air and SpiceJet also faced losses. IndiGo's profitability amidst heavy debt across airlines highlights a contrasting situation in the aviation sector.
New Delhi: Air India and Air India Express, led by the Tata Group, recorded a consolidated pre-tax loss of ₹9,568.4 crore in fiscal year 2025, with Air India incurring a loss of ₹3,890.2 crore and Air India Express a loss of ₹5,678.2 crore. Meanwhile, IndiGo posted a profit of ₹7,587.5 crore. Akasa Air and SpiceJet also experienced losses. IndiGo carries a debt of ₹67,088.4 crore, while Air India and Air India Express have debts of ₹26,879.6 crore and ₹617.5 crore, respectively.
Financial Performance of Air India and Air India Express
The financial standing of Air India and Air India Express, acquired by the Tata Group in January 2022, remains a concern for investors and aviation experts. Air India incurred a loss of ₹3,890.2 crore during this period. Air India Express, on the other hand, faced a loss of ₹5,678.2 crore. These figures clearly indicate that both airlines are still grappling with financial pressures.
Performance of Other Airlines
According to data presented in the Lok Sabha, Akasa Air experienced a loss of ₹1,983.4 crore. SpiceJet also recorded a loss of ₹58.1 crore. Conversely, IndiGo achieved a remarkable profit of ₹7,587.5 crore. These figures demonstrate IndiGo's b financial position and operational efficiency.
Existing Debt on Airlines
The data also revealed that IndiGo has a debt of ₹67,088.4 crore. Air India's debt stands at ₹26,879.6 crore. Air India Express has a debt of ₹617.5 crore. SpiceJet carries a debt of ₹886 crore, while Akasa Air has a recorded debt of ₹78.5 crore. These figures clarify the financial structure and debt severity of the airlines.
Complete Freedom After 1994
Minister Mohol stated that the Indian aviation sector became completely deregulated after the repeal of the Air Corporation Act in 1994. Airlines now make their financial and operational decisions independently on a commercial basis. This includes managing resources, debt restructuring, and other financial decisions. Within this framework, companies are recording profits or losses based on their strategies.
Reasons for Profits and Losses
The losses of Air India and Air India Express are primarily attributed to high operating costs, fleet expansion, and increased fuel prices. Meanwhile, IndiGo has reported profits due to its low-cost strategy and improved flight management. This difference highlights the intensity of competition in the Indian aviation sector.
This financial report makes it clear that the position of companies in the Indian aviation sector varies. While some airlines are still struggling with losses, some companies are making profits through their operational efficiency. This situation indicates to investors and the market that the impact of companies' strategy and management directly affects financial performance.
