Tata group-controlled Air India‘s consolidated losses surged 48% year-on-year in FY25 to Rs 10,859 crore, improved seat occupancies and growth in capacity notwithstanding, according to disclosures made by Tata Sons.
Revenues, which includes revenues of Air India Express, increased 18% y-o-y to Rs 78,636 crore during the same year.
While the airline entity was the biggest revenue generator for Tata Sons during FY25 among the unlisted companies, it was also the biggest loss maker within the Tata Group, including the listed entities.
Air India’s loss surpasses the estimate of $400-600 million
Air India’s staggering loss exceeds the estimate of $400-600 million, according to research and consultancy company CAPA India for the entire aviation market of India for FY25. IndiGo, the country’s biggest airline, closed the same year with a profit of Rs 7,258 crore.
Air India, the former flag carrier, was acquired by the Tata Group in January 2022 from the government. Vistara, a joint venture between Tata Sons and Singapore Airlines, was merged into Air India several months ago.
Tata Sons, Singapore Airlines infused Rs 9,558 crore in Air India
Tata Sons and Singapore Airlines pumped Rs 9,558 crore into Air India to meet its capital expenditure requirements. While Tata Sons invested Rs 3,225 crore, Singapore Airlines put in Rs 6,333 crore during FY25.
Air India Express and AirAsia India too got merged paving the way for the Tata Group to have one full-service carrier and a low-cost carrier. With the mergers and addition of new aircraft, the Air India Group has a fleet size of more than 300 aircraft.
From 24% recorded in September 2022, Air India Group’s (including Air India Express) domestic market share increased to 26.5% by the end of May 2025, according to data supplied by the Directorate General of Civil Aviation (DGCA). The company aims to have a market share of 30% by 2027 in the domestic aviation segment.
A total of 570 Boeing and Airbus aircraft have been ordered by Air India since the start of Vihaan.AI, its five year long transformational plan.
During FY25, the National Company Law Tribunal (NCLT) approved the composite scheme of arrangement amongst Air India, Talace, Tata SIA Airlines and their respective shareholders.
As per the scheme, Tata Sons was allotted 34.38 billion fully paid equity shares of Air India for equity and preference shares held of Talace and 13.02 billion fully paid equity shares of Air India for equity shares held of Tata SIA Airlines.
Consequently, the company derecognised equity/preference shares of Talace Private and Tata SIA Airlines and recognised new equity shares of Air India at the cost represented by the aggregate historic cost of equity and preference shares of Talace Private and Tata SIA Airlines.
During the year, upon request by Tata Sons, preference shares held of Air India were converted into 14.44 billion equity shares of Air India in accordance with the terms of issue of the preference shares.