Indian airlines are projected to suffer greater collective losses in the upcoming fiscal year due to increasing operational expenses that surpass rising demand and higher ticket prices, according to CAPA India’s analysis. The aviation consultancy estimates losses of $400 million to $600 million for the year ending in March 2025, compared to $300 million to $400 million in the previous year, tempered by IndiGo’s remarkable profitability. The industry’s overall expenses are anticipated to surge by 3.8%. India’s aviation market remains the world’s fastest-growing, with demand exceeding aircraft supply. This has resulted in record yields as airlines capitalize on a capacity shortage and higher fares, translating to fuller planes. CAPA predicts the trend of high yields to persist in the near term, with a projected 1% increase in fiscal 2025. The consultancy estimates passenger load factor (PLF) at 85% for the same period. However, the addition of 84 aircraft this year, increasing the overall fleet to 812, will alleviate some of the capacity constraints, according to CAPA India CEO Kapil Kaul. He also projects that the fleet size will more than double by 2030. India’s aviation scene is dominated by IndiGo, a low-cost carrier with a 60% market share. The Air India group, which operates two budget and two full-service carriers, holds approximately 30% of the market. Collectively, these airlines have placed orders for over a thousand aircraft from Airbus and Boeing. CAPA India forecasts domestic passenger traffic to grow from 154 million to a range of 161 million to 164 million, while international traffic is expected to increase from 75 million to 78 million.