Mumbai : Domestic aviation industry's net losses are projected to nearly double to Rs 9,500 to Rs 10,500 crore in the current fiscal ending March next year, mainly impacted by moderating passenger growth and higher costs due to aircraft deliveries, a report said on Tuesday.While maintaining a stable outlook and projecting 4-6 per cent domestic passenger traffic growth in FY26, rating agency Icra said the airline industry's financial performance is expected to remain under pressure.

"The Indian aviation sector is projected to report a wider net loss of Rs 95-105 billion in FY2026, compared to an estimated loss of Rs 55 billion in FY2025. The deterioration is linked to moderating passenger growth, coupled with higher deliveries of aircraft, which increase capital and operational expenses.

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