Air India Ltd. prepares to report a record annual loss after last year’s deadly crash and airspace shutdowns reversed turnaround progress.
Financial Impact
The Tata Group and Singapore Airlines joint venture expects at least Rs 15,000 crore ($1.6 billion) loss for the year ending March 31. Pakistan’s airspace closure for Indian airlines after a military clash forced costlier longer routes to Europe and the US.
Crash Aftermath
A June Dreamliner crash killing over 240 people erased years of gains toward profitability. Founders targeted operational break-even this fiscal year, but now full profitability remains elusive.
Industry Context
Losses compound a tough year for Indian aviation, featuring flier anxiety, delays, cancellations by rivals, and scrutiny of the duopolistic market structure.
