New Delhi: Tata Group-led Air India is expected to post a record annual loss after last year’s deadly Ahmedabad air crash incident and airspace shutdowns
wiped out progress toward a turnaround, Bloomberg quoted sources as saying.
According to government filings, Air India has incurred a total loss of Rs 322.1 billion in the last three years. Last year, the company also asked for additional assistance of at least Rs 100 billion. These circumstances have raised concerns for both Tata Group and Singapore Airlines.
In an unfortunate incident, Air India’s London-bound Boeing 787-8 Dreamliner with 242 people on board crashed moments after taking off on 12 June, 2025.
Navigating Air India’s Record Losses
The media house reported that Air India is expected to announce a loss of around Rs 15,000 crore for the year ending March 31. AI – the joining venture between Tata Group and Singapore Airlines was severely impacted after Pakistan closed its airspace for Indian airlines following Operation Sindoor. The planes were forced to take longer routes at higher costs to Europe and the US, which increased costs.
The last financial year has proved to be the most difficult in many ways for the Indian aviation industry, and Air India has suffered the biggest hit. The airline, which once aroused hope of coming out of losses and returning to the path of profit, is now moving towards record losses. A deadly plane crash, international tensions and rising operating costs have almost derailed the company’s turnaround plan.
Before the Dreamliner plane crash in June, Air India was slowly moving towards operational break-even. More than 240 people were killed in the accident and after this the anxiety of passengers, flight checks and operational obstacles increased. The company had set a break-even target in this financial year, but now profits are far away.
The management had put forward a new five-year plan before the Board, in which profit was estimated from the third year. However, the Board rejected this and has asked for a more aggressive turnaround strategy.
The report quoted sources as saying that the Tata group has started searching for a new chief executive in place of incumbent CEO Campbell Wilson. However, the final decision can be taken only after the investigation report of the accident comes out.
Air India’s crisis has come at a time when the entire Indian aviation sector is facing problems like delays, cancellations and lack of confidence of passengers in flights. This case also highlights the limited competition and risks of the country’s aviation market.
