Air India, Air India Express Report Combined FY26 Loss of Rs. 22,238 Crore as Turnaround Faces Long Road

New Delhi: Tata Group-owned Air India and its budget carrier Air India Express reported a combined net loss of ?22,238 crore in the financial year 2025-26, more than double the ?10,859 crore loss recorded in the previous fiscal, despite ongoing efforts to transform the airline group.

According to the companies' annual reports, the two airlines posted a combined revenue of ?71,870 crore in FY26, reflecting a decline of nearly 9 per cent compared to the previous year.

Air India recorded revenue of ?51,452 crore while posting a net loss of ?15,368 crore. Air India Express reported revenue of ?19,088 crore and a net loss of ?6,767 crore during the same period.

Air India's ownership is currently split between Tata Sons (73.82 per cent), Singapore Airlines (25.1 per cent), and employees (1.08 per cent) through a share benefit scheme introduced after the airline's privatisation in 2022.

In his message to shareholders, Air India Chairman N. Chandrasekaran said the airline's revival should be viewed as a long-term transformation rather than a short-term financial exercise.

"Every great airline in history was built over decades, not quarters," Chandrasekaran said, adding that rebuilding Air India is expected to take five to ten years.

He noted that the airline inherited significant operational and structural challenges, including ageing systems, fleet modernisation needs, supply chain disruptions affecting aircraft components, organisational restructuring, and the requirement to build a large pool of skilled aviation professionals.

His remarks suggest that the Tata Group's multi-billion-dollar turnaround plan may take longer than initially expected following its acquisition of the former state-owned carrier in 2022.

Earlier this month, Air India appointed UK-based aircraft marketing and asset management firm Skytech-AIC to manage the sale of six Airbus A319 aircraft as part of its ongoing fleet optimisation strategy.

With inputs from IANS