Air India’s financial losses widened sharply in the financial year ended March 2026, with its consolidated loss rising to ₹22,238.23 crore from ₹10,858.83 crore a year earlier.
The figures include the financial performance of Air India Express and highlight the financial pressure faced by the Tata Group-owned airline amid operational disruptions, geopolitical developments and rising costs.
Income Falls While Expenses Rise
Air India’s consolidated total income declined to ₹71,869.94 crore in FY26compared with ₹78,635.61 crore in FY25.
At the same time, total expenses increased to ₹93,733.31 croreup from ₹89,317.12 crore in the previous financial year.
This combination of lower income and higher expenses contributed to the substantial increase in the airline’s annual loss.
Aircraft Maintenance Costs Increase
Aircraft repair and maintenance emerged as one of the areas where Air India spent more during FY26.
Maintenance expenses increased to ₹14,976.45 crorecompared with ₹13,901.82 crore a year earlier.
Interestingly, fuel expenses moved in the opposite direction. Air India’s fuel bill declined to ₹26,871.80 crore from ₹29,023.37 crore in FY25.
However, the saving on fuel was outweighed by higher costs in other areas.
Foreign Exchange Loss Surges
One of the biggest increases came from foreign exchange losses.
Air India’s forex loss jumped to ₹7,388.23 crore in FY26compared with ₹1,545.01 crore in the previous year.
The sharp increase added significant pressure to the airline’s financial performance and came alongside other challenges, including airspace restrictions, geopolitical disruptions, fuel price volatility and operational issues.
AI171 Accident Also Reflected in Accounts
The financial year was also affected by the AI171 accident in June 2025which killed 260 people.
Exceptional items during FY26 stood at ₹429.05 croreincluding an amount related to the accident.
Air India said its parent company has adequate aviation hull and liability insurance coverage. The airline has received the agreed insurance amount for the loss of the aircraft and related incidental costs under its hull insurance policy.
The company expects liabilities arising from claims to be substantially covered by insurance based on the information currently available.
Standalone Loss Also Widens
Air India’s standalone loss increased to ₹15,367.75 crore in FY26compared with ₹3,975.75 crore in FY25.
Standalone total income also declined sharply to ₹53,662.15 crorefrom ₹64,343.09 crore a year earlier.
The difference between the standalone and consolidated figures reflects the inclusion of Air India Express in the consolidated results.
Tata Group Sees Transformation as Long-Term Process
Air India Chairman N Chandrasekaran has described the airline’s transformation as a five- to ten-year journey.
The process involves addressing legacy systems, fleet modernisation, organisational culture, supply-chain challenges and building a larger pool of aviation professionals.
Former Ethiopian Airlines Group chief Tewolde Gebremariam is also set to take charge as Air India’s managing director and chief executive later this month, as the airline enters another phase of its transformation.
Summary
Air India’s consolidated loss more than doubled to ₹22,238.23 crore in FY26from ₹10,858.83 crore a year earlier. Income fell to ₹71,869.94 crore while expenses rose to ₹93,733.31 crore. Higher maintenance and foreign exchange losses added pressure, while the airline also faced operational, geopolitical and accident-related challenges.