Air India is set to report a record annual loss after setbacks, including last year’s deadly crash and airspace shutdowns, wiped out progress toward a turnaround, according to a Bloomberg report.
The carrier, which is a joint venture between the Tata Group and Singapore Airlines, is on track to post a loss of at least ₹15000 crore ($1.6 billion) for the year ending March 31, sources told Bloomberg.
The results are a culmination of a series of setbacks in a sobering year for the 90-year old commercial aviation sector in India, which has lost $22 billion since 2004 and seen 15 registered airlines go out of business in the last 20 years. The June Dreamliner crash and IndiGo’s systemic failures in December highlighted structural problems, which go beyond lofty goals of doubling the fleet and further democratising air travel.
It was further hit by Pakistan’s closure of its airspace for Indian airlines following a military clash with India, forcing carriers to fly longer routes at higher costs to Europe and the US, they added.
IndiGo net plunges
IndiGo’s December quarter net profit saw a 78 per cent decline to ₹549 crore, following the large-scale flight cancellations in December and the implementation of the new labour code, the airline’s CEO Pieter Elbers said on Thursday, adding that last month’s disruption cost the company ₹577 crore and could lead to higher costs.
Elbers said the quarter was severely impacted by the new labour codes, currency movement pertaining to dollar-based future obligations and the operational disruption faced in December 2025.
However, despite these factors, the airline reported a net profit of ₹549.1 crore in the October-December quarter, compared with ₹2,448.8 crore earnings in the year-ago period.
IndiGo also warned of higher per-passenger costs for the full year as it expects its unit costs to grow in the mid-single-digit percentage range for the year ending March 2026, chief financial officer Gaurav Negi said.