air india
Air India, which was making efforts for reform after coming into private hands from government, has suffered a major setback. The company suffered a loss of more than Rs 220 billion (about $2.4 billion) in the last financial year, which is much higher than expected. After this huge loss, the airline is now preparing to raise funds from its investors.
Trying to raise funds from shareholders
Air India’s major owners Tata Group and Singapore Airlines, which hold 25.1% stake, are considering infusing new capital into the company. However, the amount of investment has not been decided yet and it is believed that the airline may have to explore other options for additional funds.
Many crises increased the pressure
The last financial year was full of challenges for Air India. During this period, a major plane accident occurred, Pakistan closed its airspace for Indian aircraft and the ongoing tension in the Middle East also affected the flights. Due to these reasons the company’s costs increased and operations were affected.
Questions on management and security
Company CEO Campbell Wilson has recently announced that he will step down by the end of this year. Apart from this, the safety ranking of Air India has also been weak in the latest report of the aviation regulator, due to which the company’s image has been damaged.
Start was good, but situation worsened later
Air India had performed well at the beginning of the financial year and even registered operating profit in the initial weeks of April 2025. But after the closure of Pakistan’s airspace in May, flights had to take longer routes, due to which the expenses increased. The accident of the Boeing Dreamliner in June made the situation worse.
Impact of global situation also
Even at the international level the situation was against Air India. Donald Trump’s tariff policies and visa strictures as well as the Middle East crisis impacted the company’s earnings. Due to these continuous challenges, Air India has not yet been able to recover from the losses. Now the company is eyeing new funding and operational improvements, so that the situation can be improved in the future.
