To cut mounting losses in the backdrop of several headwinds, the Tata Group-run Air India is looking to defer aircraft deliveries, cut flights and postpone expansion plans. According to a Bloomberg report citing sources, Air India is in discussions with aircraft manufacturers - Airbus SE and Boeing Co - to slow down deliveries of as many as 500 planes previously ordered.
This, as per the report, would enable Air India to push back the large payments due to plane makers upon delivery. The carrier is also reevaluating plans to fly to new domestic and international destinations, pruning some routes and postponing launches at some airports, such as the new Noida International Airport (NIA), the people familiar with the matter said.
Air India last month announced that it has temporarily reduced its international flight capacity by approximately 27%, cutting around 145 weekly flights between June and August. The carrier also reduced up to 22% of its domestic flights in an effort to cut costs.
Singapore Airlines' annual financial statement revealed that Air India's losses stood at about $2.8 billion last financial year (FY26), its biggest annual loss since the airline was taken over by the Tata Group in 2022.
The losses have escalated to record levels due to frequent airspace closures in West Asia and a permanent closure in Pakistan since March last year, rising fuel expenses and the impact of rupee devaluation against the US dollar. These challenges exacerbate the repercussions from the tragic Ahmedabad (Flight Al 171) crash on June 12, 2025, which resulted in 241 people on board and 19 people outside losing their lives.
Friday (June 12, 2026) marked the first anniversary of the deadly crash. Meanwhile, the Aircraft Accident Investigation Bureau (AAIB) stated that the investigation into the crash has now entered its final analysis stage.
An Air India spokesperson said the Bloomberg queries were highly speculative, and the carrier remains committed to modernising its fleet and carrying out its long-term transformation plan. Air India previously ordered a combined 600 aircraft from Airbus and Boeing during 2023 and 2024, and then put in more orders early this year as part of an aggressive fleet expansion.
The bulk of its deliveries are expected in 2027 and 2028, the people said. As per the report, airlines typically spread out payments for jets over several years, with the biggest cash outlay, which can be about 80% of the purchase price, coming when they are handed over.
