Air India has recorded a loss of 2.8 billion dollars for the 2025–26 financial year, largely due to Pakistan airspace closure.
This revelation was made by Singapore Airlines (SIA), which holds a 25 per cent stake in Air India.
According to the latest report by SIA, operational headwinds have played a significant role in the mounting losses. Reports cite a combination of geopolitical disruptions, including airspace closures linked to tensions in the Middle East and the continued closure of Pakistani airspace to Indian carriers, which have forced Air India to operate longer, costlier routes on several international sectors.
Air India has begun temporarily reducing or suspending several international services, with some cuts to remain in place until at least August 2026. The airline has said the changes are intended to improve network stability and reduce last-minute disruptions for passengers while it recalibrates capacity on unprofitable routes.
Air India has also been facing intense scrutiny since last year’s Dreamliner crash in Gujarat, India, which killed 260 people.
SIA warned that surging fuel costs due to the Iran war were still “filtering through” and would weigh more heavily in the year ahead, as it reported a smaller-than-expected 57.4 per cent drop in annual profit.
