Air India Chief Executive Officer Campbell Wilson said that 2025 has been a difficult year for the airline, marked by geopolitical tensions, economic headwinds, and a devastating plane crash in Ahmedabad. Speaking at the Aviation India and South Asia 2025 conference in New Delhi, Wilson described the year as one filled with ‘uncertainty,’ but assured that the airline remains resilient.

“The year 2025 has been challenging from a business perspective but it will not derail the airline,” Wilson said. He cited multiple factors, including the conflict with Pakistan, US tariffs, visa restrictions, and other geopolitical issues, which together have created ‘quite unprecedented shocks’ for the industry.

INR 4,000 crore loss due to airspace closure

Wilson revealed that Pakistan’s continued closure of its airspace to Indian carriers has inflicted an estimated INR 4,000 crore loss on Air India. The restrictions, imposed after the Pahalgam terror attack that killed 26 people, forced Indian airlines to reroute flights to Europe and North America some of their most lucrative sectors.

“These reroutes have significantly increased fuel consumption, crew costs, and turnaround times,” Wilson said, adding that the prolonged closure remains one of the airline’s biggest operational challenges this year.

Operational constraints

The Air India CEO also admitted that the airline is currently operating below its ideal aircraft capacity due to ongoing retrofit programs. “We are waiting for regulatory clearance to launch our flights to China,” he said, highlighting how geopolitical and regulatory uncertainties continue to affect Air India’s network and growth plans.

Ahmedabad crash was “Absolutely Devastating”

Addressing the tragic crash of Air India flight AI171 on June 12 as one of India’s worst aviation disasters, Wilson described it as “absolutely devastating” for everyone involved. The Boeing 787-8 aircraft, operating from Ahmedabad to London Gatwick, crashed soon after take-off, killing all 260 people on board, including 241 passengers.

“It was absolutely devastating for the people involved, for the families, and the staff,” Wilson said. “Since that time, we have been doing absolutely everything we can to support those affected, the families, first responders, and others to ease their journey forward.”

He added that the airline has completed interim compensation for the victims’ families and is now working on final settlements.

The preliminary report from the Aircraft Accident Investigation Bureau (AAIB), released on July 12, found that fuel supply to both engines was cut off within one second of each other, causing confusion in the cockpit moments after take-off. The cockpit voice recording reportedly captured one pilot asking the other why he cut off the fuel, to which the other replied that he hadn’t.

Wilson said the interim report showed no fault in the aircraft, engines, or operational procedures. “Anything that happens in the industry is a cause for introspection and review,” he noted. “We will continue to learn, improve, and get better.”

Despite the difficult year, Wilson expressed optimism about Air India’s long-term recovery under the Tata Group, emphasizing that the airline’s focus remains on safety, modernization, and maintaining trust among passengers and employees.