Hyderabad: Air India Group's consolidated net loss widened to more than Rs 6,000 crore in the first quarter of FY27, more than double the loss of over Rs 3,000 crore in the same quarter a year earlier, according to industry sources, as foreign exchange swings, high fuel costs and airspace closures squeezed the airline.
The group, owned by Tata Sons, had closed FY26 with a consolidated loss of more than Rs 22,000 crore, against nearly Rs 11,000 crore in the previous year. Consolidated forex losses alone rose to around Rs 7,400 crore in FY26 from about Rs 1,500 crore a year earlier, the sources said.
Fuel now accounts for more than half of the group's operating expenditure. Closure of Pakistani airspace has forced its Europe and North America services onto longer routes, raising flying time and fuel burn and disrupting crew deployment and aircraft utilisation.
A separate calculation based on Singapore Airlines' disclosure of a Rs 311.78 crore loss on its 25.1 per cent stake in Air India puts the carrier's standalone first-quarter loss above Rs 1,200 crore. The two figures are on different bases - consolidated group loss against the airline's standalone provisional number - and are not directly comparable.
The numbers land as the government and regulators scrutinise airline finances. Rating agency ICRA said on Thursday that the domestic aviation industry may post losses of Rs 36,000 - Rs 38,000 crore in FY27, with elevated crude prices - Brent was trading near USD 114 a barrel - keeping pressure on carriers. Air India has not published audited Q1FY27 results.
(With inputs from PTI and media reports)