Aviation

India’s aviation industry is projected to post a combined loss of nearly Rs. 18,000 crore in FY26, highlighting persistent financial stress despite robust passenger demand. Escalating fuel prices, aircraft shortages and elevated leasing costs continue to weigh on airline profitability, even as travel volumes approach pre-pandemic levels. The forecast underscores the fragile economics of the sector, where thin margins leave carriers vulnerable to external shocks.

India’s largest airline, IndiGo, recorded a modest decline in domestic market share in November, reflecting intensifying competition and capacity additions across the aviation sector. Despite retaining a dominant position, the carrier’s share slipped to 63.6 percent, underscoring shifting dynamics as rivals expand fleets, add routes and sharpen pricing strategies. Industry data suggests that seasonal factors, operational constraints and aggressive growth by competing airlines contributed to the change.

IndiGo has cancelled several flights after adverse weather conditions disrupted airport operations across key routes. The decision was taken to ensure passenger safety as poor visibility, heavy rainfall and strong winds affected takeoffs and landings. The cancellations led to temporary inconvenience for travelers, with the airline advising passengers to check flight status before heading to airports. Weather-related disruptions are a recurring challenge for carriers during volatile seasonal conditions, often requiring rapid operational adjustments.

IndiGo, India’s largest airline by market share, has been levied a Rs. 13 lakh penalty by the Goods and Services Tax (GST) authorities following a routine compliance review. The penalty pertains to discrepancies in tax filings and reporting obligations, highlighting the importance of rigorous regulatory adherence in the aviation sector. Analysts note that while the financial impact is relatively minor for a large carrier, the case underscores the evolving scrutiny of GST compliance across industries.

The launch of flight operations at Navi Mumbai Airport marks a defining moment for India’s aviation sector and the Mumbai Metropolitan Region’s economic future. Conceived to ease congestion at the saturated Chhatrapati Shivaji Maharaj International Airport, the new gateway promises expanded capacity, modern infrastructure and stronger regional connectivity. Beyond aviation, the airport is expected to act as a powerful economic catalyst, unlocking real estate development, attracting investment and strengthening supply chains.

IndiGo, India’s largest airline by market share, is grappling with an operational crisis marked by flight delays, cancellations and customer dissatisfaction. A combination of aircraft availability issues, supply-chain constraints and heightened travel demand has strained the carrier’s tightly run operations. While IndiGo has long been viewed as a benchmark for efficiency and cost discipline, recent disruptions highlight the vulnerability of even well-managed airlines to systemic pressures.

Sarla Aviation has initiated ground testing for its next-generation air taxi, marking a significant step toward operationalizing urban air mobility solutions in India. The testing phase focuses on evaluating safety systems, propulsion mechanisms, and avionics under controlled conditions before transitioning to flight trials. Analysts say this development signals growing momentum in the country’s emerging air taxi market, driven by urban congestion challenges, technological advancements, and regulatory support for electric and hybrid vertical take-off and landing (eVTOL) aircraft.

An Air India aircraft operating a scheduled service was forced to return to Delhi shortly after departure due to a technical issue related to one of its engines. The decision was taken as a precautionary measure in line with standard aviation safety protocols. All passengers and crew remained safe, and the aircraft landed without incident. The airline arranged alternative travel and assistance for affected passengers. Aviation experts say such turnbacks, while inconvenient, underscore the industry’s emphasis on safety and proactive risk management amid increasing air traffic volumes.

Severe fog conditions in the national capital led to widespread disruption at Indira Gandhi International Airport, forcing the cancellation of 129 flights and causing delays across domestic and international operations. The weather-related setback once again highlighted the vulnerability of aviation schedules to seasonal winter fog in North India. Airlines were compelled to ground several services as visibility levels dropped sharply, affecting both departures and arrivals. Airport authorities activated low-visibility procedures, while carriers worked to accommodate stranded passengers.

The Adani Group has announced its entry into aircraft engine maintenance, repair and overhaul (MRO) and passenger-to-freighter aircraft conversion, marking a strategic expansion of its aviation business. The move aligns with India’s push to develop a domestic aerospace services ecosystem and reduce dependence on overseas facilities. By adding high-value technical services to its portfolio, the conglomerate aims to tap growing demand from airlines as fleet sizes expand and cargo operations gain scale.