Aviation industry expected to see 10-15% revenue growth in FY25: ICRA

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.