This research makes a humble effort to analyse the environmental and economic factors which are instrumental towards influencing the financial performance of the Indian aviation industry, focusing on three key Indian airline company, Air India, Jet Airways, and SpiceJet over the period 2004–05 to 2018–19. The study period highlights the phase of liberalization, rising competition, escalation of fuel price and economic instability that significantly affected the profitability of the sector. Regression analysis is used as a diagnostictools to explores the relationship between various select financial ratios and Earnings Per Share (EPS). The results disclose that the Debt-Equity Ratio (DER) negatively influences EPS, signifying the sector's susceptibility to high leverage, on the other hand the Current Ratio (CR) shows a noteworthy positive influence, emphasizing the prominence of liquidity in this sector. The findings of the research signal the aviation companies towards financial restructuring in order to sustain in this volatile industry.