Air India reports $2.3 billion loss amid revenue decline

Air India and its low-cost subsidiary, Air India Express, reported a combined loss of approximately $2.3 billion (₹22,238 crore) for the fiscal year ending March 31. This figure represents more than double the losses recorded in the previous year. During the same period, revenue for the entities fell by nearly 9%, dropping to ₹71,870 crore.

Mainline Air India accounted for roughly $1.62 billion of the losses, while Air India Express lost approximately $712 million. These figures contribute significantly to the overall losses of Tata Sons' unlisted subsidiaries, which totaled about $3.35 billion.

In response to the financial downturn, Tata Group has appointed the former CEO of Ethiopian Airlines to lead a turnaround effort. Tata Sons chairman N. Chandrasekaran has characterized the restructuring as a “five-to-10-year journey,” citing challenges such as legacy systems, fleet renewal, organizational culture, supply chain disruptions for aircraft components, and technical staff shortages.