The Indian aviation industry is expecting to show a year-on-year (Y-o-Y) revenue growth of 15-20 per cent and 10-15 per cent, respectively, in financial years 24 (FY24) and 25 (FY25), credit rating agency ICRA said on Tuesday.
The net loss of the Indian aviation industry is expected to reduce to Rs 3,000-5,000 crore in FY25 from Rs 17,000 crore in FY23 as airlines continue to witness healthy passenger traffic growth and maintain pricing discipline after the ongoing consolidation in the industry, ICRA stated in its presentation.
With increasing demand for leisure as well as business travel, leading to a fast-paced recovery in domestic air traffic, ICRA expects the industry revenues to report a Y-o-Y growth of 15-20 per cent and 10-15 per cent in FY24 and FY25, respectively, it stated.
However, the pace of recovery in the industry earnings will be gradual owing to the high fixed cost nature of the business, it added.
First Published: Dec 19 2023 | 5:06 PM IST
The Indian aviation industry is projected to experience a revenue growth of 15-20% and 10-15% in the financial years 2024 and 2025, respectively, according to credit rating agency ICRA. The industry’s net loss is also expected to decrease from Rs 17,000 crore in FY23 to Rs 3,000-5,000 crore in FY25. This positive outlook is attributed to the industry’s healthy passenger traffic growth, pricing discipline, and ongoing consolidation. ICRA highlights the increasing demand for leisure and business travel, leading to a rapid recovery in domestic air traffic. However, the recovery in earnings will be gradual due to the high fixed costs associated with the aviation business.,
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