- Air India's FY26 loss has doubled to ₹22,238 crore, compared to a loss of ₹10,859 crore in FY25, highlighting the financial challenges faced by the airline.
- Tata Sons Chairman N Chandrasekaran stated that rebuilding Air India is a long journey, emphasizing that the transformation will take 5 to 10 years.
- Chandrasekaran noted that this year, Air India faced significant challenges including airspace closures, fuel price hikes due to the West Asia conflict, and foreign exchange fluctuations.
- Air India's revenue fell by 8.6% in FY26, despite an increase in total revenue to ₹78,636 crore from ₹71,870 crore in FY25.
- Chandrasekaran emphasized that 'every great airline was built over decades, not quarters,' reinforcing the long-term vision for Air India's recovery.
- Air India's transformation is aimed at creating a world-class airline that connects India globally and generates jobs across various sectors.
- Customer satisfaction has improved significantly, with Air India's Net Promoter Score (NPS) rising from minus 35 in FY23 to plus 42 in June 2026.
- Chandrasekaran acknowledged that FY26 was particularly challenging due to multiple external shocks affecting the airline's operations.
Tata Sons Chairman N Chandrasekaran emphasized that the transformation of Air India is a long-term project, requiring a five-to-ten-year commitment. The airline reported a staggering net loss of ₹22,238 crore in FY26, which is double the ₹10,859 crore loss from the previous year.3456912
Chandrasekaran attributed this challenging year to three significant external headwinds: airspace closures, fuel price spikes due to the West Asia conflict, and foreign exchange fluctuations. He noted that the crash of AI171 further complicated the airline's recovery efforts.
Despite the financial setbacks, Air India's revenue increased to ₹78,636 crore from ₹71,870 crore in FY25, although its revenue fell by 8.6% in FY26. The Tata Group remains committed to a comprehensive overhaul of the airline, which includes fleet renewal, systems upgrades, and operational changes.78
Chandrasekaran stated, “Every great airline in history was built over decades, not quarters,” reinforcing the need for patience and long-term vision in Air India's revival. He also highlighted the airline's ambition to connect India globally and create numerous jobs across various sectors.
Customer satisfaction has shown improvement, with Air India's Net Promoter Score (NPS) rising from -35 in FY23 to +42 in June 2026, indicating a positive shift in public perception.11
In summary, while FY26 was a difficult year for Air India, the Tata Group's commitment to rebuilding the airline remains steadfast, with a focus on long-term growth and transformation.
“Chandrasekaran noted that FY26 was particularly challenging due to external factors like airspace closures and fuel price hikes, which significantly impacted operations. Despite these hurdles, he reaffirmed Tata's commitment to transforming Air India into a world-class airline over the next five to ten years.”
CNBC TV18
