This study aims to analyse and compare the financial performance of two major players in the Indian aviation industry SpiceJet Ltd. and Interglobe Aviation Ltd. (IndiGo) over a five-year period from 2017–18 to 2021–22. Using secondary data sourced from the ACEEquity database and official company disclosures, the study employs key financial ratios to evaluate the companies’ liquidity, profitability, and solvency positions. Through a detailed intra-firm and inter-firm analysis, the research reveals that both airlines experienced a notable decline in financial health during the pandemic years, with SpiceJet showing signs of distress in liquidity and profitability, while IndiGo demonstrated relatively better resilience despite facing pressures. The findings underline the importance of efficient capital allocation, strong liquidity management, and timely cost control measures in navigating sector-wide volatility. This comparative analysis not only highlights internal management inefficiencies but also reflects the broader challenges faced by the aviation sector in India. The study concludes with suggestions aimed at improving the financial structure and strategic decision-making of the companies.