Tata Group-owned full-service airline operator, Air India, is expected to report at least $1.6 billion net loss in the financial year ending 2025-26 after the deadly Ahmedabad crash amid the company's turnaround plan of the aviation giant, reported the news agency Bloomberg, citing people aware of the development.
The sources also told the news agency that the Tata Group and Singapore Airlines joint venture firm, Air India's earnings are expected to be further impacted by the airspace closure of Pakistan for Indian operators after the conflict between the two countries.
This airspace closure now makes the Indian carriers flying international routes to fly longer distances at higher operating costs to reach places in Europe and the United States.
Air India, Tata Group and Singapore Airlines did not respond to the queries sent regarding the news development. Email queries sent by LiveMint also remained unanswered.
Turbulent times
This potential turnaround is stark, as Air India was moving towards profitability before the airline witnessed a deadly crash of the Ahmedabad to London flight in June 2025, which killed more than 240 people onboard.
According to the agency report, the founders of the airline have been targeting an operational break-even point in the financial year ending 2025-26. However, the report now mentions that the company's profitability is out of reach, as per the people aware of the development.
The reports on potential loss come at a time when the Indian aviation market is facing several headwinds and flyers' anxiety as airlines recover from mass flight cancellations and delays in a duopolistic market.
Air India financial snapshot
The people aware of the development also told the news agency that the management of the airline has submitted a new five-year plan which projected profits only in the company's third year, but the board of directors have rejected the plan, asking for a more aggressive turnaround push.
Tofler data cited in the news report also mentioned that Air India lost nearly ₹32,210 crore over the last three years, even after the company asked for at least ₹10,000 crore support from the parent companies, according to earlier reports.
The rising losses for the company are a concern for both Tata Group and Singapore Airlines amid the company's plans to reportedly replace Campbell Wilson. However, according to the agency report, the search may not conclude until the crash report is released.
Singapore Airlines took over a 25.1% stake after Air India merged with Vistara in 2024. However, the foreign airline has witnessed its own earnings dropping due to Air India's performance, even as the firm is looking to help Air India bring aircraft maintenance in-house as part of a restructuring plan.
