Air India Financial Performance: Air India is likely to report a record FY26 annual loss of at least USD 1.6 billion (Rs 15,000 crore), weighed down by
the AI171 crash and higher costs from airspace shutdowns and longer international routes, a Bloomberg report said. The losses follow a turbulent year for Indian aviation, marked by heightened passenger anxiety, frequent flight delays and mass cancellations by a rival carrier, developments that have thrown the spotlight on the sector’s duopolistic market structure, the report added. According to the Bloomberg report, people familiar with the matter say losses account for the AI171 crash and airspace shutdown. Earnings were further impacted by airspace closures during Operation Sindoor. During that time, alert was flagged as Indian carriers' tool longer routes to Europe and the US, sharply rising costs, the report said. The report added that the growing losses have become a point of concern for both shareholders. Tata Group has initiated a search for a new Chief Executive Officer to succeed Campbell Wilson, although the process is expected to remain on hold until the crash investigation report is released. Singapore Airlines Ltd., which acquired a 25.1% stake following the merger of Vistara with Air India in 2024, has seen its earnings weighed down by the airline’s weak performance. At the same time, it is supporting Air India’s restructuring efforts, including plans to bring aircraft maintenance operations in-house, Bloomberg report added.
#SourcesSay | Air India is likely to report a record FY26 loss of at least ₹15,000 crore, weighed down by the AI171 crash and higher costs from airspace shutdowns and longer international routes#AirIndia #AviationNews #FY26 #AirspaceClosure #IndiaBusiness pic.twitter.com/fBiMK5jmho
— ET NOW (@ETNOWlive) January 22, 2026
- Air India is likely to report a record FY26 loss.
- Airspace shutdowns during Operation Sindoor forced longer international routes.
- Tata Group has initiated a search for a new CEO.
- Singapore Airlines’ earnings have been impacted by Air India’s weak performance.
- Air India has begun returning victims’ personal belongings while the final probe report is awaited.
Air India Ahmedabad Plane Crash
In what will remain as a dark chapter in the Indian aviation history, a London Gatwick-bound Air India's Boeing 787-8 aircraft crashed soon after takeoff from the Ahmedabad airport on June 12 killing 260 people, including 241 on board and 19 on the ground. One passenger miraculously escaped the inferno.The Aircraft Accident Investigation Bureau (AAIB), in its preliminary report released on July 12, had said the fuel supply to both engines of the plane was cut off within a gap of one second, causing confusion in the cockpit soon after takeoff.
Now the most anticipated piece is the final report on the fatal crash that will help put rest to speculations around whether pilots or Boeing aircraft issues or other reasons led to the disaster.
Latest Update
As per a PTI report, seven months after the horrific air crash, Air India has started the process of returning personal belongings to the affected families, a spokesperson for the airline said on Monday.
On June 12 last year, Air India flight AI 171, a Boeing 787-8 aircraft enroute to London Gatwick, crashed into a medical college hostel complex shortly after take off from Sardar Vallabhbhai Patel International Airport. The aircraft burst into flames, killing 241 out of 242 people onboard and 19 individuals on the ground.
"Air India is handling this process of returning personal belongings to the kin of the victims with utmost respect, dignity, and accuracy. Working closely with a qualified external partner, our teams have spent considerable time cataloguing and documenting recoverable and returnable items," the spokesperson said.
Over 22,000 personal belongings have been preserved and listed on a dedicated portal with meticulous care, including nearly 8,000 'associated items', such as passports or any document that can be linked with a particular person, and 14,000 'un-associated items' that cannot be linked in this manner, the spokesperson added.
Operation Sindoor
India has closed its airspace for Pakistan airlines from April 30 while Pakistan barred Indian carriers from using its airspace. The developments followed the Pahalgam terror attack that killed at least 26 people on April 22.(With agency inputs)
