Air India and its low-cost arm Air India Express together posted a combined net loss of ₹22,238 crore in FY26, more than doubling the ₹10,859 crore loss recorded in the previous financial year, even as their combined revenue fell nearly 9 per cent to ₹71,870 crore. The figures, drawn from the airlines' annual reports, underscore the scale of the financial challenge facing the Tata Group as it attempts to rebuild the carrier following its 2022 privatisation.

Breakdown of Losses

Air India posted revenue of ₹51,452 crore and a net loss of ₹15,368 crore for the year. Air India Express reported revenue of ₹19,088 crore alongside a net loss of ₹6,767 crore. Together, the two carriers account for a combined shortfall that is roughly twice what was recorded just twelve months earlier — a deterioration that coincides with a revenue contraction rather than a phase of aggressive expansion.

What the Chairman Said

Air India Chairman N. Chandrasekaran addressed shareholders directly, framing the airline's overhaul as a long-horizon undertaking. 'Every great airline in history was built over decades, not quarters,' Chandrasekaran wrote in his message to shareholders. He described the transformation as a five- to ten-year journey, citing the condition in which the airline was acquired, prolonged supply chain disruptions affecting aircraft components, the need to modernise legacy systems and processes, fleet renewal, cultural reshaping, and the creation of a large pool of skilled aviation professionals. His remarks signal that a return to profitability is unlikely in the near term, and that the Tata Group's multi-billion-dollar commitment will need to be sustained well beyond initial timelines.

Ownership and Strategic Context

Tata Sons holds a 73.82 per cent stake in Air India, with Singapore Airlines owning 25.1 per cent and employees holding the remaining 1.08 per cent through a share benefit scheme established at the time of privatisation. The Singapore Airlines partnership was widely seen as a credibility anchor for the turnaround, bringing in both capital and operational expertise. However, the deepening losses suggest that external headwinds — including supply chain bottlenecks that have delayed aircraft deliveries industry-wide — are compounding the internal complexity of the overhaul.

Fleet and Asset Moves

Earlier in July 2025, Air India appointed Skytech-AIC, a UK-based aircraft marketing and asset management firm, to oversee the sale of six Airbus A319 aircraft. The move is consistent with a broader fleet rationalisation strategy as the airline transitions to newer, more fuel-efficient models. Analysts have noted that legacy aircraft disposals can generate one-time cash inflows but do not address the structural cost base that is driving the operating losses.

What Comes Next

The widening loss in FY26 will intensify scrutiny of Air India's turnaround timeline and the adequacy of its capitalisation. With revenue declining even as costs mount, the airline will need to demonstrate a credible path to load factor improvement and yield recovery. Industry observers will watch closely for any revision to the five-to-ten-year recovery framing offered by Chandrasekaran, particularly as competing carriers expand capacity on key domestic and international routes.