Air India's consolidated loss widens to Rs 22,238 crore in FY26

Air India's consolidated loss has widened to Rs 22,238.23 crore in the fiscal year ending March 2026 from Rs 10,858.83 crore in the previous year amid multiple headwinds.

During the same period, the Tata Group-owned carrier' total income declined to Rs 71,869.94 crore against Rs 78,635.61 crore in 2024-25, according to regulatory filings accessed by PTI.

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The consolidated figures also include financials of Air India Express.

Air India has been grappling with multiple challenges since the fatal Boeing AI171 accident in June last year that killed 260 people, along with geopolitical disruptions, airspace closures, fuel price volatility and various other operational issues.

The regulatory filings revealed that total expenses jumped to Rs 93,733.31 crore in the last financial year from Rs 89,317.12 crore a year ago on a consolidated basis.

In FY26, Air India's aircraft repair and maintenance costs increased to Rs 14,976.45 crore from Rs 13,901.82 crore, while fuel expenses fell to Rs 26,871.80 crore from Rs 29,023.37 crore in the year-ago period.

During the period, foreign exchange loss rose to Rs 7,388.23 crore in the last fiscal against Rs 1,545.01 crore.

According to the filings quoted by PTI, the parent company is adequately covered under its aviation hull and liability insurance policies.

"The parent company has received the agreed amount from the insurer towards loss of aircraft and related incidental costs under its hull insurance. The net impact after the derecognition of the aircraft has been presented as an exceptional item," the filings said.

The filing revealed that the management believes that any financial liability arising from such claims is expected to be substantially covered by the parent company insurance policies. "Accordingly, no material financial impact on the company's reserves and losses is presently expected..." it added.

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On a standalone basis, Air India's loss widened to Rs 15,367.75 crore in FY26 from Rs 3,975.75 crore in the previous year.

The Tata Group-owned carrier's standalone total income also shrank to Rs 53,662.15 crore from Rs 64,343.09 crore a year ago.

In his letter in the Tata Sons Annual Report for 2025-26, which was released in July, chairman N Chandrasekaran had said that Air India's transformation journey must be seen as a five-to ten-year journey considering the years-long supply chain disruptions in key components, the need to overhaul the legacy systems, culture, fleet and creation of a large cadre of airline professionals.