The Indian aviation sector is flying through turbulent skies as ongoing supply-chain disruptions and engine-related complications continue to cripple airline operations, according to a new report released by credit rating agency ICRA.
These recurrent challenges have had a substantial impact on the operational strength of domestic carriers, driving up costs and triggering widespread delays. While a modest recovery is projected for FY2026, the report warned that Indian aviation remains caught in a web of structural challenges impacting both efficiency and profitability.
“Challenges in the supply chain and engine failures are impacting industry capacity; the sector has been grappling with supply-chain disruptions and engine failure issues associated with Pratt and Whitney (P&W) engines provided to various airlines,” ICRA said in its report.
Among the most badly hit is Go Airlines (India) Limited, which had nearly half of its fleet grounded in FY2024 due to defective engines. The crisis worsened in January 2025, when the NCLT ordered the airline’s liquidation.
Meanwhile, InterGlobe Aviation Limited (IndiGo), India’s largest airline, stated that 60-70 of its aircraft had been grounded as of January 30, 2025, with several affected by powder metal contamination — a defect found in the materials used for manufacturing engine parts.