New Delhi: The Air India Group’s net loss widened to more than Rs 6,000 crore in the first quarter of 2026-27, more than double the loss of over Rs 3,000 crore recorded in the same quarter a year earlier, according to industry sources cited in reports on Wednesday. Air India did not comment on the figures, which have not been formally announced by the company.
The reported first-quarter result continues a difficult financial trajectory for the Tata Group carrier. In the full financial year 2025-26, the group’s consolidated loss was reported at more than Rs 22,000 crore, against nearly Rs 11,000 crore in the previous fiscal. The doubling of losses over two successive periods points to structural cost pressures that go well beyond a single weak quarter.
Fuel remains the single largest burden. Aviation turbine fuel accounts for more than 50 per cent of the group’s operating expenditure, leaving its bottom line acutely sensitive to crude oil prices and to the rupee’s value against the dollar, since fuel is priced in dollars. When crude rises and the rupee weakens at the same time, as has happened through much of the recent period, the impact on operating costs is compounded.
Airspace restrictions have added a second, persistent cost. Longer routings for Europe and North America services, forced by closures and restrictions, mean more flying time, more fuel burn and higher crew costs on some of the airline’s most important long-haul routes. The closure of Pakistan’s airspace alone is estimated to cost around Rs 4,000 crore on an annualised basis, a figure that illustrates how geopolitical constraints translate directly into airline economics.
Foreign exchange movements have delivered a third blow. Forex losses in 2025-26 were reported at around Rs 7,400 crore, against about Rs 1,500 crore in the earlier year. Aircraft leases and much of maintenance spending are denominated in foreign currency, so a weaker rupee inflates those bills even when the underlying operation is unchanged. For an airline still investing heavily in fleet renewal and cabin refurbishment, that currency exposure is difficult to hedge away entirely.
It is important to stress the status of these numbers. They are figures reported from industry sources, not an official company announcement, and Air India has declined to comment. The group, which includes Air India and Air India Express, does not publish quarterly results in the manner of a listed company, so market watchers rely on such reports — and on the group’s annual filings — to gauge its financial health.
The wider context is a Tata Group transformation programme that is still under way: new aircraft on order, a merged network, upgraded cabins and a push to rebuild Air India’s position as a global carrier. That programme requires sustained investment, and its costs arrive well before the revenue benefits of a modernised fleet and an expanded network fully materialise.
For passengers, the immediate implications are limited — schedules and services continue — but for the group’s owners, the reported widening of losses underscores the scale of the challenge. Fuel, forex and airspace are largely outside any airline’s control; the question for Air India is whether growth in revenue and efficiency gains can outpace cost pressures that, for now, show little sign of easing.
