New Delhi, Aug 21
The domestic airline industry is expected to see an operating profit at 11-14 per cent to Rs 20,000-21,000 crore this fiscal (FY26), a report stated on Thursday.
The second half of this fiscal, which typically accounts for 50-55 per cent of annual traffic, is expected to see faster growth, Crisil Ratings said in its report.
However, this fiscal year, the growth is expected to remain moderate compared to Rs 23,500 crore in the last fiscal year, due to muted demand in the first quarter and an anticipated decline in yields, the report stated.
This contrasts with the strong recovery seen in the three fiscals post the Covid-19 pandemic.
According to the report, driven by lower operating profit, debt metrics of airlines will moderate this fiscal; however, overall credit profiles will remain stable, driven by healthy liquidity and planned equity infusion by some airlines.