Air India is set to report a record annual loss after setbacks, including last year’s deadly crash and airspace shutdowns, wiped out progress toward a turnaround, according to a Bloomberg report. The June Dreamliner crash and IndiGo’s systemic failures in December highlighted structural problems, which go beyond lofty goals of doubling the fleet and further democratising air travel. It was further hit by Pakistan’s closure of its airspace for Indian airlines following a military clash with India, forcing carriers to fly longer routes at higher costs to Europe and the US, they added. Elbers said the quarter was severely impacted by the new labour codes, currency movement pertaining to dollar-based future obligations and the operational disruption faced in December 2025. However, despite these factors, the airline reported a net profit of ₹549.1 crore in the October-December quarter, compared with ₹2,448.8 crore earnings in the year-ago period.

Source: The Telegraph January 22, 2026 23:53 UTC