India's air cargo volumes hit record highs in FY25, yet most freight airlines remain unprofitable, reported Mumbai's Your Story Insight.

Blue Dart, the country's oldest express freight operator and DHL's domestic arm, posted a INR71 billion (US$783 million) profit. It was one of the few carriers in the sector to avoid losses, as the industry collectively lost more than INR5.2 trillion last year.

Quikjet Cargo reported a INR1.3 trillion loss, while Fly91 ended the year with a INR676 trillion. FlyBig, another carrier reliant on belly freight, did not submit financials.

Analysts said cargo was expected to stabilise aviation, with ecommerce, pharmaceuticals and manufacturing shipments rising. However, only premium express operators have benefited, leaving commodity freight carriers struggling.

Blue Dart's resilience stems from handling time-critical, high-value consignments such as medical supplies, banking documents and electronics, which command premium rates and predictable loads. Smaller carriers rely on general freight segments that have weakened since passenger airlines restored belly capacity, lowering shipping rates.

Rising costs for leasing freighters, fuel and spare parts have further eroded margins. Without anchor customers, smaller operators face empty-leg losses and volatile yields.

India handled 3.7 million tonnes of air cargo in FY25, up 10 per cent from the previous year. But with demand softening after two years of rapid growth, the widening gap between premium and commodity carriers raises questions about whether India can sustain a competitive freighter ecosystem.