Air India faces a $1.6 billion loss in 2026 due to a deadly crash and ongoing airspace restrictions.

Air India is expected to report a record annual loss of $1.6 billion for the fiscal year ending March 31, 2026, driven by a June 2025 Dreamliner crash in Ahmedabad that killed over 240 people and Pakistan's prolonged airspace closures following a military clash. The disruptions necessitated longer, more expensive flight routes, undoing years of progress toward profitability and derailing plans for operational break-even. The airline, owned by Tata Group and Singapore Airlines, has lost ₹32,210 crore in three years, prompting calls for at least ₹10,000 crore in additional government support. A proposed five-year turnaround plan was rejected for being too cautious, and Tata Group has begun the search for a new CEO while the crash investigation is completed.