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Air India has reported a massive loss of more than $2.4 billion for the 2025-26 financial year. The figure is much higher than what the company previously expected. This has forced the airline to request fresh funds from its owners, Tata Group and Singapore Airlines.
The airline faced several difficult situations during the year. A deadly crash of a Boeing 787 Dreamliner had a strong impact on its operations. Many flights were reduced after the incident. The crash also raised serious safety concerns. In a recent audit, the airline received one of the lowest safety ratings.
Global issues also made it difficult for the company to operate. Pakistan closed its airspace for Indian airlines, forcing Air India to take longer routes for many international flights. Longer routes required more fuel, which resulted in increased costs. The conflict in the Middle East also affected many important routes. A large part of Air India’s flights depends on this region.
Fuel prices stayed high during the year. This increased the overall costs for the airline. At the same time, earnings did not improve much, making the aviation crisis even more difficult for Air India.
The airline had shown some positive signs at the start of the year. It made small operating profits in the early weeks. However, the situation changed quickly after multiple problems. The company could not meet its goal of breaking even.
There is also some uncertainty around leadership. CEO Campbell Wilson has said he will step down later this year. This comes at a time when the airline needs clear direction and strong decisions. Tata Group, which owns Air India, now faces pressure to improve results.
Talks are now going on for a capital infusion. Tata Group is expected to provide most of the support. Singapore Airlines, which holds a 25.1% stake, is also part of these discussions. However, the total amount of funding is still not final.
If the funding is not enough, Air India may have to look for other options. This could include taking loans or raising money from other sources. That may increase the company’s financial burden.
The large Air India loss shows how difficult the current situation is for airlines. Strong competition and global problems continue to affect the industry. Air India now needs better control of costs, strong financial support, and improved service to move forward.
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