Air India has reported a combined net loss of Rs 22,238 crore for the financial year 2025-26 (FY26), more than double the Rs 10,859 crore loss recorded in the previous fiscal, highlighting the scale of the challenges facing the Tata Group-owned airline as it continues its transformation journey.
Addressing shareholders, Tata Sons Chairman N. Chandrasekaran said that rebuilding Air India into a globally competitive airline is a long-term process that could take between five and ten years. He stressed that the airline’s recovery should be viewed as a sustained transformation rather than a short-term financial exercise. N. Chandrasekaran
According to the airline’s financial performance, Air India posted revenue of Rs 51,452 crore while recording a loss of Rs 15,368 crore. Its low-cost subsidiary, Air India Express, generated Rs 19,088 crore in revenue but reported a loss of Rs 6,767 crore. Combined revenue for the two airlines stood at Rs 71,870 crore, reflecting a decline from the previous financial year.
Chandrasekaran noted that Air India’s turnaround is being affected by several structural issues, including global supply chain disruptions, the need to modernise ageing systems, fleet renewal requirements, organisational restructuring and the development of skilled aviation professionals. He emphasised that successful global airlines have historically taken decades to build, making patience and sustained investment essential to Air India’s revival.
Since returning to the Tata Group in January 2022, Air India has been undergoing one of the most ambitious restructuring programmes in Indian aviation. The airline inherited significant financial liabilities and operational inefficiencies accumulated over years of government ownership. Since then, the company has invested heavily in fleet expansion, aircraft refurbishment, digital transformation and service improvements while pursuing the integration of its airline businesses.
Despite the financial setback in FY26, Tata Group has reiterated its commitment to restoring Air India’s position as a leading global carrier. Industry observers believe that the pace of recovery will depend on improvements in aircraft availability, easing supply chain constraints and the successful execution of the airline’s long-term transformation strategy.