GURUGRAM- Air India (AI), operating out of Indira Gandhi International Airport (DEL), reported a consolidated net loss of ₹10,859 crore for the financial year 2024–25 (FY25), despite generating revenue of ₹78,636 crore. The data was revealed in Tata Sons’ latest annual report.
This marks the first full-year financial performance following the consolidation of four Tata group airlines into two: Air India and its budget subsidiary Air India Express (IX), which now includes the merged operations of Vistara and AirAsia India, respectively.
Photo: Air IndiaAir India ₹10,859 Cr ($1.2 Billion) Loss
Air India’s financial loss in FY25 highlights the cost of ongoing transformation efforts under the Tata Group’s ownership. While Air India (AI) emerged as one of the top revenue contributors among Tata’s portfolio companies, it also recorded the highest financial loss.
On a standalone basis, Air India (inclusive of Vistara) posted a revenue of ₹61,080 crore and a net loss of ₹3,976 crore. Its no-frills counterpart, Air India Express (IX), reported a higher loss of ₹5,678 crore on a smaller revenue base of ₹16,033 crore.
These results exclude the performance of joint ventures and subsidiaries. The losses are attributed to various operational and strategic investments, including rapid fleet expansion, route restructuring, upgraded sales channels, and broader commercial partnerships.
Despite the headline loss figures, progress has been made. Air India’s standalone loss dropped 21% YoY compared to FY24, while revenue rose by 13.5%.
This positive momentum was driven by expanded flight capacity and an improved route network. Compared to FY23, the airline’s losses have halved, according to company sources.
Reported by Businessline, these improvements are seen as early indicators of a long-term business turnaround. The group expects stronger results to follow as the transformation matures.
Photo: avgeekwithlens/ Harsh TekriwalScaling Challenges
Air India Express’s widened losses reflect the rapid scale-up of its fleet post-merger with AirAsia India. The airline expanded from 28 aircraft to more than 100, including over 50 newly inducted Boeing 737 Max jets.
Although this aggressive growth strategy has strained financials in the short term, it sets the stage for long-term operational efficiency and market share gains.
Moreover, foreign exchange volatility has impacted results. While lease rental expenses were borne by Air India Express, sale and leaseback profits were recorded by Air India, the primary entity holding the aircraft orders.
Photo: Clément AlloingFuture Outlook
Air India’s leadership is focused on achieving self-sustainability, with CEO Campbell Wilson emphasizing progress toward break-even. The airline’s operating profitability (EBITDAR) grew 1.59 times over FY24, signaling operational improvements.
With a fleet of 142 aircraft and 35 new routes launched since privatization in 2022, Air India (AI) is poised for recovery.
The phase out of older aircraft and better revenue management are expected to improve Air India Express (IX) results, aligning with the group’s long-term goal of financial stability by 2027.
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