Air India Express posts ₹9,568 crore pre-tax loss in FY25

New Delhi: Air India Express, the low-cost carrier under the Tata-owned Air India group, has reported a pre-tax loss of ₹9,568 crore for FY25, reflecting the severe turbulence faced by Indian aviation amid rising operational costs and competitive pressures.

The airline, which operates as the budget arm of Air India, attributed the sharp losses to high fuel prices, currency fluctuations, and mounting expenses linked to fleet expansion and integration costs. Despite strong passenger traffic growth, the bottom line remained under pressure, with yields unable to fully offset escalating costs.

The results come at a time when the Tata group is pushing ahead with the consolidation of Air India, Air India Express, and AIX Connect, alongside Vistara, to create a leaner, more competitive full-service and budget carrier network.

Industry experts say the losses underline the long runway needed for Air India’s turnaround strategy, even as the Tata group continues to inject capital and push for operational efficiencies.

A senior aviation analyst noted, “These losses reflect the heavy lifting required before the Tata group can stabilize the Air India brand. While traffic growth is robust, sustained profitability will depend on cost control, network optimization, and fleet modernisation.”

The carrier is also in the middle of a major fleet expansion, with new aircraft deliveries expected over the next two years. Industry observers believe this could improve efficiency in the medium term, but in the short run, finance and integration costs are likely to weigh on earnings. 

The results underscore the long runway for Air India Express to return to profitability, even as parent Air India pursues a turnaround plan involving a record aircraft order of 470 planes from Airbus and Boeing, technology upgrades, and service improvements.