NEW DELHI, India, January 22, 2026
Air India is on track to report a record annual loss of at least ₹15,000 crore ($1.6 billion) for the fiscal year ending March 31, 2026, according to people familiar with the matter.
The projected loss marks a reversal from earlier expectations of achieving operational break-even, primarily attributed to the aftermath of a fatal crash in June 2025 and increased operational costs from regional airspace restrictions.
On June 12, 2025, Air India Flight 171, a Boeing 787-8 Dreamliner en route to London, crashed shortly after takeoff from Ahmedabad, resulting in more than 240 fatalities and significant damage to the airline’s reputation and booking trends.
Ongoing restrictions on Pakistani airspace for Indian carriers, extended amid geopolitical tensions, have forced longer flight routes to Europe and North America, raising fuel and operational expenses.
Sources indicate the airline’s board has expressed concerns over the pace of recovery, rejecting a proposed five-year turnaround plan that delayed profitability projections. Tata Group has initiated a search for potential new leadership, though CEO Campbell Wilson’s position remains tied to ongoing crash investigations.
The challenges also affect partner Singapore Airlines, which holds a 25.1% stake following the Vistara merger, as Air India’s performance impacts joint financial outcomes.
Despite prior progress in reducing losses over recent years, the combined factors have significantly hindered the ongoing restructuring efforts under Tata ownership.
