Our Bureau
New Delhi
Air India is staring down a massive loss, at least 150 billion rupees, or about $1.6 billion, for the fiscal year ending March 2026. It’s not just bad luck. The deadly Boeing 787-8 Dreamliner crash on June 12, 2025, in Ahmedabad changed everything. That accident killed 229 passengers, 12 crew members, and 19 people on the ground. After that, India’s aviation regulator stepped in, grounding planes for inspection and forcing the airline to cut flights. The Tata Group and Singapore Airlines, who run Air India together, had hoped to break even this year.
Things kept getting worse. In April 2025, Pakistan closed its airspace to Indian carriers because of military tensions. Suddenly, flights to Europe and the US had to take longer, more expensive routes, and fuel costs shot up. Air India’s board wasn’t impressed with management’s five-year plan, which only promised profits in year three. They wanted something bolder, so they tossed it out. When asked for comment, Air India, Tata and Singapore Airlines all stayed silent.
Air India’s losses have piled up, 322.1 billion rupees gone over the last three years, according to Tofler. Last year, they even asked for a 100 billion rupee bailout. Singapore Airlines now owns about a quarter of Air India after merging with Vistara, but that hasn’t helped much. Even with in-house maintenance support, they’re feeling the pain. Tata’s hunting for a new CEO to replace Campbell Wilson, but that search might drag on until investigators release the crash report later this year.
Meanwhile, travelers are on edge. India’s airline market is basically a duopoly and now people are dealing with delays, cancellations, and a whole lot of uncertainty. As the owners scramble to restructure, Air India’s future really depends on what the crash probe finds and how soon things get back to normal.
