Air India, Air India Express Losses More Than Double to ₹22,238 Crore in FY26: Tata Group’s Airline Revival Faces a Longer Road…

The financial challenges facing Air India and its low-cost subsidiary Air India Express have deepened, with the two airlines reporting a combined net loss of ₹22,238 crore in FY26—more than twice the loss recorded a year earlier.

According to the airlines’ annual reports, the combined net loss stood at ₹10,859 crore in the previous financial year. At the same time, combined revenue declined by nearly 9 per cent to approximately ₹71,870 crore during FY26.

The figures underline the scale of the challenge facing the Tata Group as it attempts to rebuild Air India into a globally competitive airline.

While the group has invested heavily in aircraft, technology, customer experience and operational improvements, the latest financial results suggest that the turnaround is likely to be a much longer process than a simple short-term recovery.

Air India Alone Reports ₹15,368 Crore Net Loss

The annual report figures show that Air India generated revenue of approximately ₹51,452 crore during FY26.

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However, the airline reported a net loss of around ₹15,368 crore for the financial year.

Meanwhile, Air India Express recorded revenue of approximately ₹19,088 crore and a net loss of ₹6,767 crore.

Combined, the two airlines generated revenue of around ₹71,870 crore, but their total losses reached ₹22,238 crore.

The numbers come at a critical point in the Tata Group’s efforts to transform the airline business.

The group took control of Air India in 2022 after completing its acquisition from the Government of India. Since then, the airline has embarked on an ambitious transformation programme involving fleet renewal, cabin refurbishment, technology upgrades and network expansion.

However, the latest financial results demonstrate that rebuilding a major legacy airline comes with significant costs.

N Chandrasekaran Warns: ‘Every Great Airline…’

Addressing shareholders, N Chandrasekaran, Chairman of Tata Sons, offered a long-term perspective on the airline’s financial and operational transformation.

“Every great airline in history was built over decades, not quarters,” Chandrasekaran wrote in his message to shareholders.

His comments suggest that the Tata Group does not expect Air India’s transformation to deliver instant financial results.

Instead, the airline is being rebuilt with a much longer horizon in mind.

Chandrasekaran has previously described the transformation as a five- to 10-year journey, pointing to the difficult starting position of the airline, years of underinvestment, supply-chain disruptions and the need to modernise legacy systems.

Why Is the Turnaround Taking So Long?

Transforming an airline is considerably more complicated than simply replacing old aircraft.

Air India has been working to modernise its fleet while simultaneously upgrading its technology infrastructure, improving customer service and changing internal processes.

The airline also needs to build a much larger pool of skilled aviation professionals, including pilots, engineers, cabin crew and other technical specialists.

At the same time, global supply-chain challenges have affected the availability of aircraft components and maintenance requirements, adding another layer of complexity to the transformation.

Chandrasekaran has highlighted several areas that require sustained investment, including fleet renewal, legacy system upgrades, organisational culture and workforce development.

The Tata Group’s challenge is therefore not just to reduce losses but to create an airline capable of competing with established international carriers over the long term.

Tata Group’s Multi-Billion-Rupee Bet on Air India

The Tata Group’s return to the aviation sector has been one of India’s most closely watched corporate stories.

The acquisition of Air India marked the return of the airline to its original promoter group after decades under government ownership.

Since then, the group has been investing in a broad transformation strategy designed to create a stronger aviation business.

The group has also been consolidating its airline operations. Air India and Air India Express now form part of a larger aviation ecosystem that includes different segments of the passenger market.

The strategy is aimed at creating a more integrated airline business capable of serving both domestic travellers and international passengers.

But the latest financial numbers show that the cost of this transformation remains substantial.

Air India’s Ownership Structure

Following its privatisation, Air India is primarily owned by Tata Sons, which holds approximately 73.82 per cent of the airline.

Singapore Airlines holds around 25.1 per cent, while employees own approximately 1.08 per cent through a share benefit scheme created during the privatisation process.

The ownership structure reflects the strategic partnership between the Tata Group and Singapore Airlines as the airline works towards building a stronger international presence.

For Tata Sons, however, the latest losses underline the scale of the financial commitment required to revive the carrier.

Six Airbus A319 Aircraft Put Up for Sale

In another development linked to Air India’s fleet strategy, the airline recently appointed UK-based aircraft marketing and asset management firm Skytech-AIC to oversee the sale of six Airbus A319 aircraft.

The move comes as Air India continues to reshape and modernise its fleet.

Selling older or surplus aircraft can be part of a broader fleet optimisation strategy, particularly as airlines introduce newer aircraft and attempt to streamline their operations.

For Air India, fleet renewal remains one of the central pillars of its transformation plan.

The airline is expected to continue investing in new aircraft while upgrading existing planes to improve passenger experience and operational efficiency.

The Bigger Question: When Will Air India Become Profitable?

The latest financial results inevitably raise questions about when the airline will begin delivering sustainable profits.

However, the Tata Group’s leadership appears to be preparing stakeholders for a longer wait.

The message from Chandrasekaran is clear: the transformation of Air India should not be judged solely by quarterly or annual financial results.

Instead, the airline’s progress needs to be measured against broader milestones such as fleet modernisation, customer satisfaction, operational reliability, network growth and the development of a stronger aviation workforce.

That does not make the ₹22,238 crore combined loss any less significant. It does, however, highlight the enormous scale of the turnaround effort underway.

A Longer Road Ahead for India’s Flag Carrier

The latest FY26 numbers paint a difficult financial picture for Air India and Air India Express, but they also come at a time when the Tata Group is attempting one of the most ambitious airline transformations in India’s corporate history.

The combined loss of ₹22,238 crore is a major setback on paper, particularly when compared with the previous year’s ₹10,859 crore loss.

Yet the Tata Group’s leadership continues to argue that rebuilding the airline will take years rather than quarters.

For passengers, investors and the broader Indian aviation industry, the coming years will be crucial.

The ultimate test will be whether the billions being invested today can eventually produce a financially sustainable, globally respected carrier.

For now, the journey continues—and according to Chandrasekaran’s own timeline, Air India’s real transformation story may still have several years to run.