Air India FY26 loss more than doubles, turnaround extended

Air India, the airline acquired by the Tata Group in 2022, reported a net loss of 22,238 crore rupees for the financial year ending March 2026, more than double the 10,859 crore rupee loss from the previous year. The airline's revenue also declined, falling to approximately 71,870 crore rupees from 78,636 crore rupees a year earlier, according to the Tata Sons annual report.

In a message to shareholders, Tata Sons Chairman N. Chandrasekaran described the past year as the most challenging for Air India since its privatization. He attributed the deteriorating financial performance to a combination of external headwinds: airspace closures, fuel price hikes driven by conflict in West Asia, foreign exchange fluctuations, and the impact of the crash of flight AI171. He noted that few industries are as vulnerable to geopolitical and fuel price pressures as aviation.

The annual report indicates that the airline's ambitious transformation will take considerably longer than originally planned. Chandrasekaran stated that rebuilding Air India must be seen as a five- to ten-year journey, a revision from the five-year "Vihaan.AI" strategy unveiled in 2022. He cited persistent global supply...