Air India has reported a record annual loss of around $2.8 billion for its 2025–26 financial year, underscoring the scale of the challenges facing the Tata Group-owned carrier as it pushes through a major turnaround plan.
According to the latest annual report from shareholder Singapore Airlines, which holds a 25% stake in Air India, the group’s net loss reached 3.56 billion Singapore dollars, equivalent to roughly $2.8 billion, in the 12 months to the end of March. It is the airline’s largest loss since its privatization and sale to Tata Group in 2022.
The results show a sharp deterioration from the previous year. For 2024–25, Air India’s standalone loss stood at $415 million, while consolidated losses, including low-cost subsidiary Air India Express, were $1.13 billion.
The group faced significant headwinds during 2025–26, including operational disruptions linked to the conflict involving Iran and Pakistan’s decision to bar Indian carriers from its airspace, which forced longer routings and raised costs. The deep losses come as Air India undertakes a broad restructuring that includes network adjustments, cancellation of some routes and reduced frequencies, alongside a multibillion-dollar fleet renewal and service upgrade program.