Air India, a joint venture airline of India’s Tata Group and Singapore Airlines Ltd, is set to report a record annual loss this fiscal following last year’s fatal crash in Ahmadabad and Pakistan airspace shutdowns. According to a report by Bloomberg, which quoted sources aware of the development, Air India is on track to post a loss of at least Rs 15,000 crore ($1.6 billion) in Financial Year 2025- 2026.
Air India has been making losses for years now and a takeover by the Tata Group in early 2022 was expected to change that. However, various external factors, a record aircraft orderbook and streamlining operations are believed to keep the airline in the red.
Bloomberg reported that Air India was edging back toward profitability before the plane crash in Ahmedabad in June 2025 that killed more than 240 people. Tata Sons had targeted operational breakeven this fiscal year, but profitability is now out of reach, people aware of the development said.
The closure of Pakistan's airspace has also been a major drag for the airline. Air India in October informed that it has incurred losses of Rs 4,000 crore over the past few months due to restrictions on flying over Pakistan since April 2025.
As per the report, 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. Government filings compiled by business intelligence platform Tofler show Air India has lost Rs 32,210 crore over the past three years. The airline sought at least Rs 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. When contacted, Air India did not respond to comments on the losses.