It’s Thursday, January 22, 2026, and if you’ve been watching Air India’s attempt at a comeback, the latest numbers from Bloomberg are a gut punch. The airline is staring down a record ₹15,000 crore (1.6 billion) loss for the current fiscal year.
The thing is, this isn’t just about bad management. It’s the fallout from a “black swan” event that changed everything. Or nothing.
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Air India’s “Perfect Storm”: Field Notes
It’s an ongoing situation where years of slow, painful progress were wiped out in a single afternoon last summer. Here’s the ground reality of how we got to this record loss:
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The Ahmedabad Tragedy: Everything changed on June 12, 2025. Air India Flight 171 (a Boeing 787 Dreamliner) crashed shortly after takeoff from Ahmedabad, killing 260 people. The thing is, before that day, the Tata Group was actually on track to break even this year. Let’s be real—the crash didn’t just cost money; it shattered the “New Air India” trust. Those too.
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The “Operation Sindoor” Airspace Tax: On top of the tragedy, military flare-ups led to Pakistan shutting its airspace to Indian carriers. Now, flights to London or New York have to take massive detours. The thing is, longer routes mean burning way more fuel—millions of dollars extra every single day.
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CEO Hunt: The board has reportedly lost patience. They’ve already started the hunt for a successor to Campbell Wilson. The thing is, they’ve been talking to big-name CEOs from UK and US airlines. But and here’s the kicker—nobody wants to take the job until the final crash investigation report is out. Nobody wants to sign up for a sinking ship if the cause was “systemic.”
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The Vistara Strain: Singapore Airlines (which owns 25.1%) is also feeling the heat. Their own earnings are being dragged down by Air India’s mess. It’s an ongoing situation where the “dream merger” with Vistara is currently looking more like a weight around their neck. Or nothing.
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Air India Financial & Crisis Tracker (Jan 2026)
| Metric | Current Estimate | The “Ground” Reality |
| FY26 Projected Loss | ₹15,000 Crore | The biggest annual loss in the airline’s history. |
| Accumulated Losses | ₹32,210 Crore | Total losses over the last three financial years. |
| Crash Cause (Prelim) | Fuel Cutoff | Switches moved to “CUTOFF” 32 seconds after takeoff. |
| CEO Status | Succession Active | N. Chandrasekaran looking for a “faster” turnaround lead. |
| Fleet Status | Delivery Delays | Zero new aircraft “designed for AI” received so far in 2026. |
And Here’s the Kicker…
The thing is, the board just rejected a new five-year recovery plan submitted by management. Why? Because it only projected a profit by Year 3. The Tata Group wants blood—they want a “forceful” strategy that makes money now. Let’s be real—with old planes falling apart and new ones delayed by supply chain drama, “fast” might be impossible. Those too.
One side comment—aviation campaigners in the US are now claiming the crashed aircraft (VT-ANB) had a history of electrical fires and “latent defects” since 2014. If the final report blames the plane and not the airline, Air India might actually save some face (and insurance money). But for now? It’s a mess. Or nothing.
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End…
