Air India, now under the Tata Group’s stewardship, reported a staggering ₹10,859 crore consolidated net loss for financial year 2024–25 (FY 25), marking a sharp 48% year-on-year increase despite underlying revenue growth and operational improvements. mint
Financial Snapshot: Growth vs. Loss
- Revenue rose by 18% to ₹78,636 crore, driven by higher capacity, improved seat occupancy, and integrated performance of Air India Express, Vistara, and AirAsia India.
- Air India’s loss far exceeded CAPA India’s aviation industry-wide loss estimate of ₹3,300–5,000 crore for FY 25, while market leader IndiGo recorded a profit of ₹7,258 crore.
Loss Breakdown and Business Structure
- The financial results encapsulate the merged operations of Air India’s full- and low-cost carriers: Air India, Air India Express (including Vistara and AirAsia India post-merger).
- The standalone entity (Air India plus Vistara) posted revenue of ₹61,080 crore and a loss of ₹3,976 crore, whereas Air India Express recorded a loss of ₹5,678 crore on revenue of ₹16,033 crore.
Transformation Strategy: Costs and Capital Infusion
- Air India’s aggressive investment plan under its Vihaan.AI transformation includes onboarding new Airbus A350s and Boeing 787 Dreamliners, and expanding its route network rapidly.
- During FY 25, Tata Sons and Singapore Airlines infused a total of ₹9,558 crore into Air India (₹3,225 crore from Tata Sons and ₹6,333 crore from Singapore Airlines).
Emerging Positives and Recovery Trends
- While the headline loss was significant, standalone losses declined by 21% compared to FY 24, and revenue rose by 13.5%, pointing to improved operational efficiency. Operating profit metrics also improved, with EBITDAR increasing 1.59x year-on-year.
- The carrier added 35 new routes and expanded its fleet to over 300 aircraft, supporting its goal of achieving a 30% domestic market share by 2027. Its current share stands at 26–27%, up from 24% in 2022.
📌 Key Facts at a Glance
| Metric | FY 25 Figure / Change |
|---|---|
| Revenue (Group-wide) | ₹78,636 crore (+18% YoY) |
| Total Net Loss | ₹10,859 crore (+48% YoY) |
| Air India Standalone Loss | ₹3,976 crore |
| Air India Express Loss | ₹5,678 crore |
| Capital Infusion | ₹9,558 crore (Tata + Singapore Airlines) |
| Loss Reduction & Revenue Growth | Standalone loss down 21%; revenue up 13.5% |
Why It Matters
Air India’s FY 25 results reflect the high upfront costs of an ambitious turnaround strategy. While performance improved in several operational metrics, the scale and pace of restructuring generated deep losses in the short term. Industry observers anticipate that benefits from newer fleet, integrated brand structure, and expanded international capacity may take several years to materialize.
