Dreamfolks Services shares fell 4.7% to ₹225 after announcing the discontinuation of travel-related programmes linked to ICICI Bank and Axis Bank, raising concerns about its revenue stream and financial performance. The company reported a 17.09% decline in net profit for Q1 2025, while broader industry trends show banks shifting away from aggregators like Dreamfolks toward direct tie-ups with lounge operators.

Dreamfolks Services shares rebounded 14% from their day's low after the company clarified that media reports about potential partnerships with Indian banks and card networks were unrelated to their regular business practices. The stock recovered from a five-day losing streak following the clarification.

India’s largest airport service aggregator, DreamFolks Services Ltd, saw its shares plunge 14% following reports that major banks ICICI Bank, Axis Bank, and Mastercard plan to terminate their agreements with the company. The stock fell 55.17% from its 52-week high, with a 51% annual loss. The crisis followed a September 2024 service disruption that left thousands of passengers stranded, prompting backlash from airport operators like Adani, GMR, and TFS. The company reported FY25 revenue of Rs 1,292 crore (up 13.84%) and a net profit decline of 5.80% to Rs 65 crore, despite maintaining 90% market share in airport lounge access.

ICICI Bank, Axis Bank, and Mastercard are reportedly withdrawing from DreamFolks Services Ltd, India’s largest airport lounge aggregator, following a 2024 service disruption that left travelers stranded. Banks are now exploring direct partnerships with lounge operators like Adani, GMR, and TFS. DreamFolks, which claimed a 90% market share, faces a potential loss of dominance as banks and airports shift toward direct integration models.

Major Indian banks and card companies, including Axis Bank, ICICI Bank, and Mastercard, are seeking alternatives to DreamFolks Services, a dominant airport lounge aggregator, by directly partnering with lounge operators like Adani, GMR, and TFS. This shift follows a previous disruption at DreamFolks' lounges, which led to temporary closures and prompted clients to diversify their partnerships.