IndiGo: India's Only Profitable Major Airline Amid Aviation Sector Losses

IndiGo currently dominates approximately 65% of India's domestic aviation market share.

While passengers continue to struggle with widespread flight cancellations and delays caused by IndiGo's operational crisis, government statistics presented in the Lok Sabha on Thursday have highlighted a stark reality: India's aviation industry is predominantly operating at a loss.

The Ministry of Civil Aviation's written response revealed that IndiGo emerged as the only major airline to generate profits in the financial year 2024-25, recording earnings of Rs 7,253 crore. By comparison, Air India suffered losses of Rs 3,976 crore, Air India Express Rs 5,832 crore, Akasa Air Rs 1,986 crore, and Alliance Air Rs 691 crore. SpiceJet continued its financial struggles with a Rs 56-crore deficit, while Star Air, a smaller carrier, managed to achieve a modest profit of Rs 68 crore.

This financial distress isn't recent. During 2022-23, Indian airlines collectively reported losses exceeding Rs 18,600 crore, with Air India alone accounting for Rs 11,387 crore, and IndiGo registering a Rs 316-crore deficit. However, the following financial year witnessed a remarkable recovery for IndiGo, which earned Rs 8,167 crore, though most other airlines continued to experience financial challenges. During this period, Air India recorded losses of Rs 4,444 crore and SpiceJet Rs 404 crore.

Despite increasing passenger demand, losses continue to accumulate across the industry. Domestic passenger traffic increased by 7.7% in financial year 2024-25, reaching 16.55 crore travelers, yet most airlines remain burdened by substantial debt and elevated operational expenses.

IndiGo's market dominance has significantly magnified the impact of its recent operational breakdown, where thousands of flights were canceled due to staff shortages and new duty-time regulations. With competing airlines facing financial difficulties, passengers have limited alternatives, resulting in overcrowded airports, escalating ticket prices, and growing customer dissatisfaction.