Air India may post $1.6 billion loss after Ahmedabad plane crash amid airline’s turnaround plan: Report
Tata Group-owned full-service airline operator Air India is expected to report a net loss of at least $1.6 billion in the financial year ending 2025-26 following the fatal Ahmedabad crash amid the company’s turnaround plan for the aviation giant, the news agency reported Bloomberghe said, citing people aware of the development.
Sources also told the news agency that earnings of Tata Group and Singapore Airlines joint venture company Air India are expected to be further affected by the closure of Pakistan’s airspace to Indian operators following the conflict between the two countries.
The airspace closure is causing Indian carriers, which now fly international routes, to fly longer distances at higher operating costs to reach destinations in Europe and the United States.
Air India, Tata Group and Singapore Airlines did not respond to questions regarding the development of the news. Email inquiries sent by Live Mint also remained unanswered.
turbulent times
Air India was heading towards profitability before it witnessed the fatal crash on its Ahmedabad to London flight in June 2025, killing over 240 people on board. This potential return is obvious.
The airline’s founders are targeting an operational break-even point in the financial year ending 2025-26, according to the agency report. However, the report states that the company’s profitability is unattainable, according to sources aware of the development.
Reports of potential losses come at a time when the Indian aviation market is facing several headwinds and passenger concerns as airlines recover from mass flight cancellations and delays in a dual market.
Financial snapshot of Air India
People aware of the development also told the news agency that the airline’s management presented a new five-year plan that predicted profits in only the company’s third year, but the board rejected the plan, demanding a more aggressive turnaround.
Tofler data cited in the news also stated that Air India almost lost. ₹32,210 crore in the last three years despite the company claiming the least ₹10,000 crore support from parent companies as per earlier reports.
The company’s mounting losses are a concern for both Tata Group and Singapore Airlines amid the company’s plans to replace Campbell Wilson. However, according to the agency’s report, the searches will not be concluded until the accident report is published.
Singapore Airlines took over 25.1% stake following Air India’s merger with Vistara in 2024. But even as the company tried to help Air India bring aircraft maintenance in-house as part of its restructuring plan, the foreign carrier saw its own earnings fall due to Air India’s performance.
