January 23, 2026 08:01 pm (IST)
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Air India faces renewed turbulence as a deadly crash and regional airspace closures derail its long-anticipated financial turnaround.
Air India
Air India braces for record $1.6 billion loss after deadly 2025 crash and airspace closures. Photo: Air India PR Team

Tata Group–owned Air India is set to post an annual loss following a series of setbacks, including last year’s deadly crash and airspace disruptions, erasing much of the progress made toward its long-awaited turnaround, media reports said.

The full-service carrier—jointly owned by the Tata Group and Singapore Airlines Ltd.—is on track to report a loss of at least ₹150 billion ($1.6 billion) for the financial year ending March 31, according to people familiar with the matter cited by Bloomberg.

Earnings were further strained after Pakistan closed its airspace to Indian airlines following a military confrontation, forcing carriers to operate longer, costlier routes to Europe and the United States, the sources said.

Deadly 2025 crash

On June 12, 2025, a London-bound Boeing 787-8 Dreamliner crashed seconds after take-off from Ahmedabad’s Sardar Vallabhbhai Patel International Airport at around 1:30 pm, killing all but one of the 242 passengers and crew on board.

The aircraft lost altitude shortly after departure and plunged into residential quarters housing doctors from BJ Medical College in the Meghaninagar area.

The crash triggered a massive fire, sending thick plumes of black smoke into the sky.

At least 34 people on the ground were also killed in the tragedy, making it one of India’s deadliest aviation disasters in recent years.

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