Air India’s Worst Year: Crash Sparks Massive Loss

Air India is heading toward its worst financial year, with losses expected to cross Rs 15,000 crore. The setback has intensified after a fatal Dreamliner crash in Gujarat and repeated operational disruptions. These events have stalled the airline’s recovery plans.

The airline had shown signs of improvement before the June crash that killed over 240 people. Management expected to reach operational break-even this fiscal year. That target now looks impossible.

Air India losses after crash and disruptions

The crash in Gujarat delivered a major blow to confidence and operations. Air India also faced prolonged airspace restrictions that disrupted schedules and raised costs. These shocks derailed momentum built over the past year.

The airline operates as a joint venture between Tata Group and Singapore Airlines. Before the crash, the carrier had steadily moved closer to profitability. The recent events reversed that progress.

Pakistan airspace closure adds pressure

Financial strain increased after Pakistan closed its airspace to Indian airlines following Operation Sindoor. Air India had to fly longer routes to Europe and the United States. This sharply increased fuel and operating costs.

The wider aviation sector in India also remains under stress. Passenger anxiety, frequent delays, and mass cancellations by IndiGo have added to uncertainty. These factors continue to hurt demand and confidence.

Board rejects recovery plan

Air India’s management submitted a five-year recovery plan to address the losses. The plan projected profitability only in the third year. Reports say the board rejected the proposal.

Air India, Tata Group, and Singapore Airlines declined to comment. While external shocks played a major role, the scale of Air India losses points to deeper structural issues. Long-term stability now depends on stronger reforms and execution.