New Delhi, March 27 -- Research and rating firm ICRA has revised its outlook on the Indian aviation industry to Negative from Stable, citing rising geopolitical tensions in West Asia, currency depreciation, and increasing fuel costs.
The prevailing adverse operating environment is expected to strain airline profitability and moderate demand growth.
The rating agency noted that disruptions in international airspace availability since late February 2026 have led to flight rerouting, higher fuel consumption, and increased operating costs.
These pressures are being compounded by the weakening of the Indian rupee against the US dollar and a sharp rise in aviation turbine fuel (ATF) prices.
Demand Growth Likely to Remain Subdued
ICRA h...