Air India's board met on May 7 in Mumbai to confront the airline's most difficult financial period since its privatisation. The meeting, chaired by Tata Sons chairman N Chandrasekaran, reviewed the airline's financial performance, cost management, and the succession plan for CEO Campbell Wilson, who is expected to step down later this year.
The airline is projected to record losses exceeding ₹22,000 crore in FY26, as per the reports of the Economic Times. It is more than double the consolidated losses of ₹10,859 crore reported for FY25.
The West Asia conflict, closed Pakistani airspace, and surging ATF prices have all converged to push the carrier into the deepest financial hole of its Tata-era existence.
The board considered other cost-saving measures, given that other international routes have become less profitable due to the longer routes and fuel consumption.
As per the reports of Reuters, the carrier could further rationalise its flight schedules and research ancillary revenue policies. Also up for discussion were staff salaries, annual increases, and bonuses.
The airline's specific proposals involve unbundling meals from tickets and having business class customers pay extra for access to the lounge. No final decisions were taken.
The statistics surrounding the crisis are devastating. ATF prices rose 18.2 per cent year on year as of April 1, 2026, due to geopolitical uncertainty in West Asia.
The long detours around conflict zones have cost trans-continental sectors 90 minutes in total, with ATF now being responsible for as much as 60 per cent of operating costs.
The airline began to cut flights and would continue to do so in the coming months, CEO Wilson said on May 1, stating that they had no choice but to further cut schedules for June and July.
Suggestions from among the personnel of Air India, Singapore Airlines, which has a 25.1% stake, and from within the European aviation industry are all being considered. Alternative solutions of a joint MD/CEO model are also under consideration. Nipun Aggarwal, Chief Commercial and Transformation Officer, Air India and Chairman, Air India Express, is one of the contenders considered for the job. A timetable for the appointment has not been confirmed by the board yet.
Air India's transformation programme, fleet modernisation, network expansion, and the integration of AIX Connect and Air India Express remain formally on track. But the financials tell a harder story.
The airline's operating costs are up 50 per cent, and it remains profitable on domestic routes but not on international ones.
The Tata Group's biggest turnaround initiative now has the biggest test, with a new CEO yet to be ferreted out, schedules cut through July, and the balance sheet showing losses of ₹22,000 crore for the FY26.
The board has bought itself time - whether the next 90 days provide answers on leadership and costs will be the difference in whether this has been a crisis meeting or a true course correction.
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