Air India posts ₹10,859 cr loss in FY25 despite revenue rise
Mumbai: Tata group-owned Air India reported a consolidated loss of ₹10,859 crore in FY25, marking a 48% year-on-year surge, despite improved seat occupancy rates and capacity expansion, media reports said.
Revenues for the year, which include those of Air India Express, rose 18% on-year to ₹78,636 crore, The Financial Express reported.
While Air India brought in the highest revenue among Tata Sons’ unlisted companies in FY25, it was also the group’s biggest loss-maker across both listed and unlisted entities.
The airline’s massive loss far exceeded the overall FY25 aviation market estimate of $400–600 million made by consultancy firm CAPA India.
By contrast, IndiGo, India’s largest airline, reported a profit of ₹7,258 crore for the same period.
The Tata Group took over Air India, the former national carrier, from the government in January 2022.
Earlier this year, Vistara—its joint venture with Singapore Airlines—was merged into Air India.
To support capital expenditure, Tata Sons and Singapore Airlines together infused ₹9,558 crore into Air India in FY25, with Tata Sons contributing ₹3,225 crore and Singapore Airlines investing ₹6,333 crore.
Air India Express and AirAsia India were also merged, positioning the Tata Group with one full-service airline and one low-cost carrier.
Following the mergers and fleet expansion, the Air India Group now operates more than 300 aircraft.
Its domestic market share, which stood at 24% in September 2022, rose to 26.5% by May 2025, according to DGCA data.
The company has set a target of capturing 30% of the domestic market by 2027.
Since launching its five-year Vihaan.AI transformation plan, Air India has placed orders for 570 aircraft from Boeing and Airbus.
In FY25, the National Company Law Tribunal approved a composite scheme of arrangement involving Air India, Talace, Tata SIA Airlines and their respective shareholders.
Under this scheme, Tata Sons received 34.38 billion fully paid equity shares of Air India in exchange for its equity and preference shares in Talace, and 13.02 billion shares for its stake in Tata SIA Airlines.
As a result, equity and preference shares of Talace and Tata SIA Airlines were derecognised and replaced with new Air India equity shares, recorded at their historic cost.
Additionally, preference shares held by Tata Sons in Air India were converted into 14.44 billion equity shares in line with their terms of issue.
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