Air India’s consolidated loss for FY26 grew to ₹22,238 crore from ₹10,858 crore a year ago. The results reflect an 8.6% drop in income and a sharp rise in foreign exchange costs. The airline, which is not listed on stock exchanges, continues its complex multi-year turnaround under Tata Group and Singapore Airlines.
Air India has reported a significant widening of its financial losses for the fiscal year 2025-26. The airline’s consolidated net loss more than doubled, reaching ₹22,238.23 crore, compared to the ₹10,858.83 crore loss reported in the previous financial year.
The company faced a challenging year as its total income dropped by 8.6% to ₹71,869.94 crore, down from ₹78,635.61 crore in FY25. During the same period, total expenses moved in the opposite direction, increasing by 4.9% to ₹93,733.31 crore. This combination of lower earnings and higher spending created a difficult financial environment for the carrier.
A primary factor behind the increased losses was a sharp rise in foreign exchange costs. The company reported foreign exchange losses of ₹7,388.23 crore, a significant jump from ₹1,545.01 crore in the previous year. For airlines, which often manage large portions of their costs, such as fuel and aircraft leasing, in foreign currencies, volatility in exchange rates can create substantial financial pressure.
Operational costs also remained heavy. Aircraft repair and maintenance expenses climbed by 7.7% to ₹14,976.45 crore. However, the airline did see some relief in fuel costs, with expenditure on aviation fuel declining by 7.4% to ₹26,871.80 crore compared to the prior year.
The results also capture the impact of the fatal AI171 accident that occurred in June 2025. Exceptional items for the year included ₹429.05 crore related to this event. Air India has stated that it expects liabilities from this accident to be substantially covered by its insurance policies and does not anticipate a material impact on its reserves beyond the insurance coverage provided.
It is important for investors and readers to note that Air India is not a publicly listed company on the NSE or BSE. As a private entity jointly owned by the Tata Group (74.9%) and Singapore Airlines (25.1%), it does not have a tradable share price or public market capitalization. Consequently, the airline’s performance directly impacts its parent companies and shareholders rather than public equity markets.
Tata Sons Chairman N Chandrasekaran has previously emphasized that the airline’s transformation is a long-term, five-to-ten-year project. The FY26 financials highlight the scale of this task, involving deep changes to the fleet, operational systems, and workforce culture. The airline's ability to return to profitability will likely depend on its ability to manage these high operational costs, stabilize its global flight network, and improve revenue efficiency.