Air India Ltd, now majority-owned by the Tata Group alongside Singapore Airlines, is expected to report a historic annual loss of at least ₹15,000 crore for the financial year ending March 31, 2026 — its largest on record. This severe downturn reverses progress the airline had made toward stabilising finances and achieving breakeven under the post-privatisation turnaround strategy. Crash and Operational Setbacks Derail Turnaround A major factor driving the projected loss is the June 2025 crash of Air India Flight 171, a Boeing 787 Dreamliner that crashed shortly after takeoff from Ahmedabad, killing more than 240 people, both onboard and on the ground. The fatal accident not only led to reputational fallout and shaken passenger confidence but also triggered grounded aircraft, schedule disruptions, and increased scrutiny from regulators and investigators. In addition to the crash’s impact, prolonged airspace closures by Pakistan amid geopolitical tensions compelled Air India to reroute flights to Europe and North America via longer and more expensive paths, significantly raising fuel and operational costs for the carrier — further eroding financial performance. Strategic Goals Pushed Out of Reach Before these setbacks, Air India’s leadership had targeted operational breakeven for FY26 as a key milestone in its multi-year… Read MoreBusiness Archives – Trak.in – Indian Business of Tech, Mobile & Startups
