Air India, despite mounting losses, sees FY25 revenue inching closer to IndiGo’s
Mumbai: Air India has approached India’s largest airline Indigo in three years since the Tata group has brought back the expropriated carrier.
Air India’s income increased by 15% in 2024-25 La78.636 CRORE LaAir India, Tata Sia Airlines Ltd, Talace Pvt. LTD – Airline is one of the biggest contributions of Tata Group La15.3 trillion topline in FY25.
Indigo operated by Interglobe Havacılık “” saw the income increased La84.098.2 FY25 LaThe previous year is 68.904.3 Crore.
However, Air India was the largest missing manufacturer for the TATA group in 25 financial years and its loss expanded. La10.859 Crore from the United Loss LaAccording to Tata Sons’ last annual report, 7,356.3 Crore for three relevant assets in the 24 financial years.
Talace and Tata Sia or Vistara were joined under Air India Banner in FY25. Talace was a subsidiary of a fully owned Tata group created to buy Air India from the Indian government.
After taking back the airline in 2022, TATA SONS President N. Chandrasekaran hired former Singapore Airlines Executive Campbell Wilson to lead Air India.
Wilson’s 5 -year revival strategy, which began in September 2022, includes reconstruction of old aircraft, the purchase of new aircraft, increasing Air India’s internal market share to at least 30%, and expanding international routes.
Air India currently has a 26-27% domestic market share behind Indioga, which is currently dominant with a market share of 64-65%.
Next turbulence
At the 2023 Paris Air Show, he signed a $ 70 billion worth of $ 70 billion to buy 470 aircraft from Airbus and Boeing, as well as a Refit program of 400 million dollars to raise 67 old planes at the Paris Air Show.
In December 2024, Air India took the number of aircraft ordered to 570 and gave an additional order for the 100 Airbus plane. Deliveries from these orders are expected to be completed by 2030.
However, the accident of the AI-171 Boeing flight, which killed Air India’s 242 people on board last month, may have pushed back the airline’s revival plans.
Although the air accident does not directly affect Air India’s expansion plans and profitability, an unexplained collapse of this size can even delay the delivery timeline of Boeing, which has been supported for months.
In such a case, Air India may also see delays to acquire new aircraft that affect the return strategy.
Mayur Milak, Senior Vice President of the Asian markets, said, “The air accident was a rare unfortunate event that could not affect the company’s expansion plans, but Boeing’s problems could delay the delivery of airplanes that may shake their profits.”
According to Reuters, Boeing delivered 60 aircraft to Global Airlines with an increase of 27% in June compared to the previous year report.
Meanwhile, India’s aviation industry is expected to cause a clear loss. LaAccording to ICRA ICRA, ICRA 26 financially 2,000-3,000 Crore. However, domestic airline traffic is expected to grow in 25 financial years with an increase of 7-10% to this financial year, with an increase of 7.6%.
In the May report, ICRA maintained a stable appearance for India’s aviation industry. However, increasing crude oil prices warned potential risks due to a possible increase in insurance premiums after the closure of Iran and Pakistani airspace for Indian carriers and Air India accident.
According to the rating agency, the operating costs of domestic airlines are likely to increase due to flight cancellations and other deductions, but other disruptions following the Indian-Pakistan tensions, but general passenger traffic and ticket prices have remained stable so far.
