In his statement accompanying Tata Sons’ annual report for the fiscal year ended March 31, 2026, Chandrasekaran framed the carrier’s revival as a long-term overhaul requiring persistent capital and structural patience, warning against expectations of an immediate operational recovery.
“Given where it began, Air India’s transformation must be seen as a five- to 10-year journey,” Chandrasekaran wrote. He pointed to lingering component delays, legacy tech infrastructure and the necessity of building an upgraded technical workforce as primary friction points.
The statement coincides with severe financial strain across Tata’s aviation division.
Air India reported a net loss exceeding ₹22,000 crore for FY26.
The result represents more than double the ₹10,859 crore loss logged in FY25 and significantly exceeds initial internal budget estimates. Tata Group reclaimed ownership from the Indian government in January 2022.
The ballooning fiscal deficit stems from a confluence of operational disruptions over the past twelve months. “This year, Air India faced three external headwinds. Air space closures; West Asia conflict-driven fuel price hikes and foreign exchange fluctuations; and the crash of AI171 made it the most challenging year for Air India.At every stage, Air India’s teams responded with resilience and adaptability,” he added.
The corporate turmoil led to the departure of CEO Campbell Wilson, prompting Chandrasekaran to step in directly to oversee weekly operational reviews across flight operations, commercial strategy, and financial engineering.
Despite the heavy losses, Tata Sons maintains that core operational foundation metrics are beginning to move in the right direction.
Refurbishments of the narrow-body fleet for domestic routes are now complete while wide-body cabin retrofits remain scheduled through late FY28.
Insurance to Help
Tata Sons said insurance is expected to shield Air India from most of the financial fallout of the June 12 Flight AI171 crash, with claims from passengers, crew and third parties expected to be substantially covered under the airline’s aviation liability insurance and not materially affect its finances.