Air India Ltd. is set to report a record annual loss after last year’s deadly crash and airspace shutdowns wiped out progress toward a turnaround, according to people familiar with the matter.
The carrier, which is a joint venture of Tata Group and Singapore Airlines Ltd., is on track to post a loss of at least ₹15,000 crore (~$1.6 billion) for the year ending 31 March 2026, the people said. Earnings were further hit by Pakistan’s closure of its airspace for Indian airlines following a military clash with India, forcing carriers to fly longer routes at higher costs to Europe and the United States, they added.
The reversal is especially stark because Air India had been edging back toward profitability before the plane crash in Ahmedabad in June 2025 that killed more than 240 people—undoing years of progress. Tata Sons Pvt. Ltd. had targeted operational breakeven this fiscal year, but profitability is now out of reach, the people said.
The losses come on the back of a turbulent year for Indian aviation marked by flier anxiety, flight delays and mass cancellations by a rival carrier that has put a spotlight on the duopolistic market structure.
Spokespersons for Air India, Tata Group and Singapore Airlines did not respond to emailed request for comments on the losses.
Air India’s five-year plan
A new five-year plan submitted by management projected profits only in its third year, but it was rejected by the board, which has asked for a more aggressive turnaround push, the people said.
Government filings compiled by business intelligence platform Tofler show Air India has lost ₹32,210 crore over the past three years. The airline sought at least ₹10,000 crore in fresh support last year.
The mounting losses are now a concern for both owners. Tata Group has begun scouting for a new chief executive officer to replace Campbell Wilson, though the search may not conclude until the crash report is released.
Singapore Airlines Ltd., which took a 25.1% stake after merging Vistara with Air India in 2024, has seen its own earnings dragged down by the Indian carrier’s performance even as it helps Air India bring aircraft maintenance in-house as part of a restructuring plan.
