India's aviation sector reports doubled Air India loss and 20% fare rise

Tata Group‑owned Air India and its low‑cost arm Air India Express posted a combined net loss of Rs 22,238 crore for FY 2026, more than twice the loss recorded in the previous year, while combined revenue fell about 9% to Rs 71,870 crore. Air India Chairman N. Chandrasekaran said the carrier’s turnaround will require a five‑to‑10‑year effort, citing supply‑chain disruptions, fleet renewal and cultural change.

Separately, the Ministry of Civil Aviation disclosed that average domestic airfares in India jumped 20.5% across 72 sectors between March 2025 and June 2026. The increase reflects higher costs for aviation turbine fuel (35‑40% of airline expenses), foreign‑exchange rates, taxes and lease rentals. The government highlighted measures such as a Tariff Monitoring Unit, a one‑time Rs 10,000 crore support package for fuel stabilization, and regulatory steps to lower interest and excise duties.