Air India Faces Historic 15,000 Crore Rupees Loss for Current Fiscal Year

New Delhi: Air India, under the Tata Group, is reportedly heading toward the largest financial crisis in its history. The airline is expected to record a loss of around 15,000 crore rupees for the current fiscal year. A combination of air accidents and geopolitical conflicts has severely impacted the company’s financial stability.

The closure of airspace by Pakistan due to military tensions with India forced Air India to take longer routes to Europe and the United States, sharply increasing fuel costs. Flight cancellations and delays have also damaged public's trust in the airline.

The Air India board's rejection of a five-year turnaround plan proposed by management also highlighted the depth of their crisis. The original plan aimed to achieve profits by the third year, but the board demanded faster results, prompting the Tata Group to seek new leadership to replace CEO Campbell Wilson.

After the merger with Vistara in 2024, Singapore Airlines, which holds a 25.1% stake in Air India, has also been affected by the airline’s poor performance.

In a context of global aviation uncertainty, the Tata Group faces the dual challenge of restoring financial discipline while ensuring passenger safety, with the aim of returning Air India to its former glory.