New Delhi: Air India's consolidated loss for the fiscal ended March 2026 widened to ₹22,238.23 crore, up from ₹10,858.83 crore in 2024-25, according to regulatory filings made public on Wednesday. Total income fell to ₹71,869.94 crore from ₹78,635.61 crore in the prior year, while total expenses climbed to ₹93,733.31 crore from ₹89,317.12 crore.
Key drivers: forex, maintenance and exceptional items
The filings attribute the deterioration to a combination of factors. Notable among them was a steep rise in foreign exchange losses, which jumped to ₹7,388.23 crore in 2025-26 from ₹1,545.01 crore a year earlier. Aircraft repair and maintenance costs also increased to ₹14,976.45 crore from ₹13,901.82 crore.
Fuel costs, however, moved in the opposite direction, easing to ₹26,871.80 crore from ₹29,023.37 crore in 2024-25. The consolidated numbers include the results of Air India Express, as noted in the filings.
Exceptional item and insurance position
The filings recorded exceptional items of ₹429.05 crore, which include an amount related to the fatal AI171 accident in June last year that resulted in the loss of 260 lives. The parent company has, the documents state, received agreed sums from insurers for loss of aircraft and related costs under hull insurance; the net effect after derecognition of the aircraft has been presented as an exceptional item.
"The parent company has received the agreed amount from the insurer towards loss of aircraft and related incidental costs under its hull insurance. The net impact after the derecognition of the aircraft has been presented as an exceptional item," one of the filings said.
The filings add that, based on currently available information, management expects that any financial liability arising from claims related to the accident will be substantially covered by the parent company's insurance policies. Accordingly, the company said there is no anticipated material financial impact on the parent from such claims.
What the numbers mean for travellers, creditors and investors
For passengers, the immediate implication is limited: operational disruptions cited in the filings include geopolitical events, airspace closures and various operational challenges, but the company continues to serve routes through its combined group operations. For creditors and market-watchers, the widened loss is a signal that balance-sheet pressures surfaced in FY26 despite lower fuel costs.
- Higher maintenance and repair costs put pressure on operating margins.
- Large foreign exchange losses amplified the bottom-line impact despite some cost relief from fuel.
- Insurance proceeds related to the AI171 accident have been accounted for as an exceptional item, and management expects significant coverage through existing policies.
The filings also referenced broader headwinds the airline faced during the year, including the fatal AI171 accident, geopolitical disruptions, airspace closures and volatility in fuel prices and other operational issues.
Selected financials (consolidated, FY26 vs FY25)
| Item | FY26 | FY25 |
|---|---|---|
| Total income | ₹71,869.94 crore | ₹78,635.61 crore |
| Total expenses | ₹93,733.31 crore | ₹89,317.12 crore |
| Consolidated loss | ₹22,238.23 crore | ₹10,858.83 crore |
| Fuel expenses | ₹26,871.80 crore | ₹29,023.37 crore |
| Repair & maintenance | ₹14,976.45 crore | ₹13,901.82 crore |
| Foreign exchange loss | ₹7,388.23 crore | ₹1,545.01 crore |
| Exceptional items | ₹429.05 crore | — |
Air India noted that the consolidated figures cover Air India Express as well. The regulatory statement reiterated that the parent company has adequate aviation hull and liability insurance in place and that the insurance proceeds for loss of aircraft have been received and recognised.
For consumers and industry watchers, the FY26 results underline that airlines remain exposed to swings in currency markets and to cost shocks from maintenance and unforeseen events. While lower fuel bills offered some relief, the surge in foreign exchange losses and rising repair costs were decisive in widening the group's consolidated deficit for the year.
Investors and creditors will watch subsequent quarters and the company's guidance — including any cost-control measures, fleet and insurance decisions — to assess the path to stabilisation. For travellers, the filings do not signal an immediate change in service levels, but ongoing operational challenges remain a sector risk.
