Air India Faces $1.6B Loss, Looks for New CEO After Deadly 2025 Crash

Air India has reported it expects its largest annual financial loss since the Tata Group acquired the airline in 2022, with sources telling Bloomberg that the carrier could post losses of at least $1.6 billion for the fiscal year ending March 31, 2026.

This represents a dramatic setback after years of sustained deficits and a following recovery trajectory that had suggested the airline was nearing financial stability.

2025 plane crash reverses progress

The airline had been approaching break-even before a series of unexpected disruptions derailed its plans. The most significant of these was the June 2025 crash of a Boeing 787 Dreamliner near Ahmedabad, which took 241 lives. The accident forced Air India to ground or reduce operations on certain aircraft, affecting schedules and undermining passenger confidence.

Read our explainer on flying safety to learn more about the crash and other notable cases.

Strategic urgency and leadership shake-up

Internal discussions revealed a proposed five-year recovery plan forecasting profits in the third year, but the board rejected this, demanding a more aggressive approach to returning to profitability.

The Tata Group has launched a search for a new CEO to lead the airline through this challenging period, with the appointment likely to await until the official investigation into the crash is concluded.

Photo by Vivek Arya on Unsplash