Air India working on revised plan for profitability

The Pakistan airspace closure and fatal Dreamliner crash last June, among other developments, have significantly impacted the financials of loss-making Air India, which is in the middle of the ambitious five-year transformation plan Vihaan.AI.

Air India is working on a revised plan for achieving profitability, which is likely to be at least three to four years away, as the Tata Group-owned airline grapples with multiple headwinds, according to sources. The sources also said that the airline is likely to record more than Rs 15,000 crore loss in the current fiscal ending March 31, 2026. The Pakistan airspace closure and fatal Dreamliner crash last June, among other developments, have significantly impacted the financials of loss-making Air India, which is in the middle of the ambitious five-year transformation plan Vihaan.AI. Air India, which is jointly owned by Tata Group and Singapore Airlines, is working on a revised plan for profitability. With various uncertainties and challenges, the airline is likely to turn profitable only in the next three to four years, the sources told PTI. Under the Vihaan.AI that commenced in September 2022, nearly eight months after Air India was privatised, the airline was expected to be in the green within the five-year period. Queries sent to Air India, Tata Sons and Singapore Airlines seeking comments on the revised plan for profitability did not elicit any responses. In the fiscal ended March 31, 2025, Air India and Air India Express together posted a loss before tax of Rs 9,568.4 crore. Air India had a loss before tax of Rs 3,890.2 crore while its low-cost arm Air India Express, which had been profitable for long, registered a loss of Rs 5,678.2 crore in 2024-25, as per the data shared by the civil aviation ministry in the Lok Sabha in August last year. The Pakistan airspace closure is having a significant financial impact on Air India as the airline is forced to take longer routes for its North America and Europe flights. With more fuel being burnt for longer duration flights, the airline's operational expenses are now higher. Last October, Air India CEO and MD Campbell Wilson said the estimated loss due to the Pakistan airspace closure is Rs 4,000 crore but also mentioned that various uncertainties that are impacting travel demand globally. On June 12, 2025, an Air India Boeing 787-8 Dreamliner en route from Ahmedabad to London Gatwick crashed soon after take-off, killing 260 people, including 241 persons onboard the ill-fated plane. The carrier has incurred substantial expenses related to the crash. While announcing the Vihaan.AI plan in September 2022, Air India said it was a roadmap with clear milestones. ''Over the next 5 years, Air India will strive to increase its market share to at least 30 per cent in the domestic market while significantly growing the international routes from the present market share. The plan is aimed at putting Air India on a path to sustained growth, profitability and market leadership,'' the airline had said. Meanwhile, Air India is in the process of revamping its fleet, which currently stands at around 190 planes. Earlier this month, the airline took delivery of its first Boeing 787-9 aircraft after privatisation. The carrier will be getting more than 570 new planes in the coming years.

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