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New Delhi: Rating agency ICRA has estimated in its latest report that the total loss of the aviation industry during the current financial year 2025-26 could be between Rs 2 and 3000 crores. This is in line with the estimate of loss in the last financial year 2024-25. What is the reason behind the losses? The report said that companies may incur this loss due to the continuous increase in aviation fuel prices. During the financial year 2023-24 the companies had a net profit of Rs 1600 crore. Also the domestic air passenger traffic growth rate has declined to 7.6 percent. According to the report the industry saw stable pricing power in FY 2025 stable yields and domestic air passenger traffic growth rate declined to 7.6 percent. Domestic air passenger traffic in June grew 5.1 per cent year-on-year to over 1.38 crore but declined marginally compared to May it said in a report released on Friday July 11. Domestic air passenger traffic estimated at 138.7 lakh in June 2025 Maintaining a stable outlook for the industry ICRA said supply chain disruptions including Pratt & Whitney engine problems continue to impact capacity and costs. Domestic air passenger traffic was estimated at 138.7 lakh in June 2025 up 5.1 per cent from 132.1 lakh in June 2024. However it saw a marginal decline of 1.3 per cent on a sequential basis. Capacity deployment of airlines in June 2025 was 4.9 per cent higher than June 2024; however it was 2.3 per cent lower than May 2025. How did India-Pakistan conflict affect Indian aviation industry? The operating costs of the Indian aviation industry are likely to have increased over the past few months (due to flight cancellations and other operational challenges following the India-Pakistan conflict). Rising crude oil prices (due to the Israel-Iran conflict) closure of airspace over Iran and Pakistan (for Indian carriers) likely increase in insurance premiums (after the recent plane crash) and possible hesitancy to travel - potential downside risks need to be monitored closely.