ICRA forecasts a challenging fiscal year for the Indian aviation industry, projecting increased losses between Rs 9,500-10,500 crore due to geopolitical factors and trade headwinds. Passenger traffic growth is expected to slow to 4-6% in FY26, impacting profitability amidst rising aircraft deliveries. The industry faces pressures from flight disruptions, travel hesitancy, and potential dampening of business sentiments.