AI consolidated loss widens to Rs 22,238 crore in FY26

Air India’s consolidated loss widened to Rs 22,238.23 crore in the fiscal ended March 2026 from Rs 10,858.83 crore in the year-ago period amid multiple headwinds.

During the same period, total income declined to Rs 71,869.94 crore against Rs 78,635.61 crore in 2024-25, according to regulatory filings. The consolidated figures include financials of Air India Express.

Air India has been grappling with multiple challenges, including the fatal AI171 accident in June last year that killed 260 people, as well as geopolitical disruptions, airspace closures, fuel price volatility and various operational issues.

The regulatory filings showed that on a consolidated basis, total expenses jumped to Rs 93,733.31 crore in the last financial year from Rs 89,317.12 crore a year ago.

In 2025-26, aircraft repair and maintenance costs increased to Rs 14,976.45 crore from Rs 13,901.82 crore, while fuel expenses fell to Rs 26,871.80 crore from Rs 29,023.37 crore in the year-ago period. Foreign exchange loss rose to Rs 7,388.23 crore in the last fiscal against Rs 1,545.01 crore, the filings showed.

In the last fiscal, exceptional items stood at Rs 429.05 crore, including an amount related to the fatal AI171 plane crash. According to the filings, the parent company is adequately covered under its aviation hull and liability insurance policies.

“The parent company has received the agreed amount from the insurer towards loss of aircraft and related incidental costs under its hull insurance. The net impact after the derecognition of the aircraft has been presented as an exceptional item,” one of the filings said. The filing said that based on the information currently available, the management believes that any financial liability arising from such claims is expected to be substantially covered by the parent company insurance policies.

“Accordingly, no material financial impact on the company’s reserves and losses is presently expected...” it added. The financial statements for the 2025-26 fiscal year were approved on June 1, 2026.

On a standalone basis, Air India’s loss widened to Rs 15,367.75 crore in the fiscal year ended March 2026 from Rs 3,975.75 crore in the year-ago period.

In the 2025-26 fiscal, the Tata Group-owned carrier’s standalone total income also shrank to Rs 53,662.15 crore from Rs 64,343.09 crore a year ago, as per the filings.

Air India is jointly owned by Tatas and Singapore Airlines.

Singapore Airlines Group’s net profit dropped 57 per cent to SGD 1.184 billion (nearly Rs 8,900 crore) in the fiscal year ended March 2026, mainly due to the absence of a prior-year one-off accounting gain related to the Vistara merger, and Air India losses.

Air India’s loss stood at more than SGD 3.56 billion (over Rs 26,700 crore) in the financial year ended March 2026, as the carrier grappled with the fallout of airspace curbs and other headwinds.

The figures were disclosed by Singapore Airlines Group in its annual financial report for 2025-26, released in May. The rupee figures were based on the exchange rate of May 14.

In his letter in the Tata Sons Annual Report for 2025-26, which was released in July, N Chandrasekaran had said that Air India’s transformation journey must be seen as a five- to ten-year journey, considering the years-long supply chain disruptions in key components, the need to overhaul the legacy systems, culture, fleet and creation of a large cadre of airline professionals.

Chandrasekaran is the Chairman of Tata Sons and Air India.

Meanwhile, former Ethiopian Airlines Group chief Tewolde Gebremariam is set to take charge as the MD and CEO of Air India later this month.