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Rajya Sabha

India Aviation Sector Losses Cross ₹24,000 Crore In 3 Years; ₹10,000 Crore More Likely SEO DES: Govt said post-1994 deregulation, airlines independently manage operations and finances based on market conditions without direct government control SOCIAL: India’s aviation sector reported ₹24,819 crore in losses over FY2022–23 to FY2024–25, the government informed Parliament. Losses were ₹18,606.78 crore in FY2022–23, ₹924.39 crore in FY2023–24, and ₹5,289.73 crore in FY2024–25 (provisional). The Ministry of Civil Aviation said the data was based on airline submissions. It also noted industry estimates of ₹9,500–₹10,500 crore additional losses in FY2025–26. The government reiterated that the sector is deregulated, with airlines independently managing operations and pricing, which depends on factors like fuel cost, demand, and capacity. New Delhi, India: India’s aviation sector has incurred cumulative losses of ₹24,819 crore over a three-year period from FY2022–23 to FY2024–25, the government informed the Rajya Sabha, reflecting continued financial strain across the industry. Minister of State for Civil Aviation Murlidhar Mohol, in a written reply, said the loss figures were based on data submitted by scheduled airline operators. According to the government, airlines reported losses of ₹18,606.78 crore in FY2022–23, which sharply narrowed to ₹924.39 crore in FY2023–24, before rising again to ₹5,289.73 crore (provisional) in FY2024–25, taking the total losses over the three financial years to ₹24,819 crore. The information was provided in response to a parliamentary query seeking details on the financial performance of the aviation sector, including loss trends and future outlook. The query also cited industry estimates suggesting that airlines could incur further losses in the range of ₹9,500 crore to ₹10,500 crore in FY2025–26, indicating that financial pressures may persist despite fluctuations in yearly performance. The government reiterated that the aviation sector operates in a deregulated environment following the repeal of the Air Corporations Act in March 1994, allowing airlines to independently take financial and operational decisions based on market conditions. It noted that aspects such as resource mobilisation, capacity planning and restructuring are managed by airlines on commercial considerations without direct government control. On airfare pricing, the minister said ticket rates are not regulated and are determined by airlines depending on several factors, including seat occupancy, fuel costs, aircraft capacity and seasonal demand. This dynamic pricing mechanism enables carriers to adjust fares in response to changing market conditions. Addressing cost structures, the government stated that the price of Aviation Turbine Fuel has been market-determined since April 1, 2001. ATF currently attracts 11 per cent central excise duty, while a reduced rate of 2 per cent applies to flights operating under the Regional Connectivity Scheme. In addition, state governments and Union Territories levy Value Added Tax on ATF at varying rates. Despite the deregulated framework, airlines continue to operate under regulatory oversight and are required to comply with provisions laid down under the Aircraft Rules, 1937, as well as civil aviation requirements issued by the Directorate General of Civil Aviation.

India Aviation Sector Losses Cross ₹24,000 Crore In 3 Years; ₹10,000 Crore More Likely

Aviation Today News Desk / March 20, 2026

New Delhi, India: India’s aviation sector has incurred cumulative losses of ₹24,819 crore over a three-year period from FY2022–23 to […]

The mystery of MH370 deepens as search pauses again after eleven years, the wait continues. Flight MH370 vanished from radar on March 8, 2014, about 40 minutes after takeoff from Kuala Lumpur to Beijing with 239 people onboard | Aviation Today

Investigation, Mystery

The Mystery of MH370 Deepens as Search Pauses Again After Eleven Years, The Wait Continues

Aviation Today News Desk / April 4, 2025

Picture Credits: Kentaro Iemoto Kuala Lumpur, Malaysia: Malaysia has halted the latest search for Malaysia Airlines Flight MH370 just six

New Aviation Law in India to Cut Aircraft Leasing Costs, May Lower Airfares With over 86% of India’s aircraft on lease, the Bill is expected to lower leasing costs by 8-10%, potentially reducing airfares | Aviation Today

Indian Airlines

New Aviation Law in India to Cut Aircraft Leasing Costs, May Lower Airfares

Aviation Today News Desk / April 2, 2025

Picture credits: Air India New Delhi, INDIA: On April 1, 2025, the Rajya Sabha passed The Protection of Interests in

On December 5, 2024, Parliament passed the Bharatiya Vayuyan Vidheyak, 2024, signaling a transformative leap for India’s aviation sector. This landmark legislation replaces the nearly 90-year-old Aircraft Act of 1934 with a modern, dynamic framework designed to meet the evolving demands of the aviation industry. The Act, which prioritizes safety, innovation, and economic empowerment, lays the basis for India's rise to prominence in the global aviation sector | Aviation Today

BREAKING: 90-Year-Old Aircraft Act Replaced by Bharatiya Vayuyan Vidheyak Bill 2024

Aviation Today News Desk / December 6, 2024

Picture Credits: PTI New Delhi: On December 5, 2024, Rajya Sabha passed the Bharatiya Vayuyan Vidheyak, 2024, signaling a transformative

New Delhi: After being approved by the Lok Sabha earlier in August, Union Aviation Minister Kinjarapu Rammohan Naidu presented the Bharatiya Vayuyan Vidheyak, 2024 to the Rajya Sabha on December 3, 2024 | Aviation Today

Aviation Minister Presents Bill to replace 90-year-old Aircraft Act in Rajya Sabha

Aviation Today News Desk / December 4, 2024

Picture from X New Delhi: After being approved by the Lok Sabha earlier in August, Union Aviation Minister Kinjarapu Rammohan

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