India's aviation sector is expected to incur net losses of Rs 36,000-38,000 crore in the current fiscal year. This increase in losses compared to last year's Rs 28,000-30,000 crore stems from several challenges. Factors such as moderation in passenger growth and rising aviation turbine fuel prices heavily impact the sector. Additionally, the depreciation of the Indian rupee and increased costs put further pressure on airline profitability.