Air India has reported a wider-than-expected annual loss exceeding ₹220 billion ($2.4 billion), pushing the airline to seek fresh financial support from its shareholders, according to sources familiar with the matter.
The loss for the fiscal year ended March 31 was significantly higher than earlier internal estimates. The period was marked by multiple challenges, including a fatal incident involving a Boeing 787 Dreamliner, airspace restrictions by Pakistan, and ongoing tensions in the Middle East, all of which impacted operations and costs.
The airline’s majority owner Tata Group, along with minority stakeholder Singapore Airlines, is reportedly in discussions to inject additional capital. However, the size of the potential funding remains uncertain and may not fully meet the airline’s financial requirements.
The losses come at a crucial time for Air India, which is undergoing a transformation plan but continues to face operational and service challenges. With leadership changes expected and pressure mounting to improve performance, the airline’s path to recovery remains complex.
