The financial performance of three prominent Indian airline companies—Air India, SpiceJet, and Jet Airways—was examined over the period from 2004–05 to 2018–19 using the CAMEL model. The study evaluated the financial performance of the selected airlines across five key dimensions: Capital Adequacy, Asset Quality, Management Efficiency, Earnings, and Liquidity. Ratio analysis was employed to assess the financial trends and relative performance of the selected airlines over the study period. The selected timeframe encompasses significant developments in the Indian aviation industry, including rapid market expansion, increasing competition, rising operating costs, and persistent financial challenges. Given the capital-intensive nature of the aviation industry, coupled with high fuel costs, substantial fixed operating expenses, regulatory complexities, and intense competitive pressures, systematic financial performance assessment is essential for evaluating the financial soundness and sustainability of airline companies. The CAMEL-based analysis provides a comprehensive framework for assessing the financial strengths and weaknesses of the selected airlines and identifying variations in their financial performance over time. The findings of the study are expected to provide valuable insights for airline management, investors, financial institutions, and policymakers in making informed decisions, strengthening financial stability, improving operational and strategic efficiency, and enhancing the long-term sustainability of the aviation sector in an increasingly uncertain and competitive business environment.