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Tata Group-owned Air India and its low-cost subsidiary Air India Express reported a combined pre-tax loss of ₹9,568.4 crore (approximately $1.1 billion) for the financial year ending March 2025, according to provisional data shared by the Ministry of Civil Aviation.
Air India alone posted a standalone pre-tax loss of ₹3,890.2 crore, while Air India Express, historically profitable, swung to a significant loss of ₹5,678.2 crore. This marks a notable shift for the budget carrier, which had played a central role in Air India’s recovery after the Tata Group’s acquisition of both airlines in January 2022.
In contrast, IndiGo, India’s largest carrier by market share, maintained strong financial performance with a pre-tax profit of ₹7,587.5 crore (around $869 million). Newer entrant Akasa Air and struggling SpiceJet recorded losses of ₹1,983.4 crore and ₹58.1 crore, respectively.
The financial data also revealed contrasting debt levels among the major airlines. Air India held a debt of ₹26,879.6 crore at the end of FY25, while IndiGo’s debt was notably higher at ₹67,088.4 crore, reflecting its aggressive fleet and network expansion. Smaller carriers showed relatively modest debt: Air India Express at ₹617.5 crore, Akasa Air at ₹78.5 crore, and SpiceJet at ₹886 crore.
This divergence underscores different financial strategies as airlines balance expansion, operational costs, and debt management in a competitive and cost-sensitive market environment influenced by fluctuating fuel prices, currency changes, and international demand recovery.
Since the repeal of the Air Corporation Act in 1994, India’s domestic aviation market has been fully deregulated, with airlines independently managing their finances without direct government intervention. This places the responsibility for sustainable operations and financial restructuring solely on the carriers themselves. For Air India, now under Tata Group ownership, the challenge remains to execute a long-term restructuring plan while remaining competitive.
The FY25 financial performance highlights a clear divide in India’s aviation sector: IndiGo continues to strengthen its market dominance and profitability, while Tata Group’s airlines navigate the heavy burdens of transformation and integration. The losses at Air India Express, once a profitable budget arm, are particularly noteworthy amid these challenges.
Overall, the sector remains highly competitive and debt-driven, with carriers facing continued pressure from global economic factors. These provisional figures provide a revealing snapshot of the financial health of India’s top airlines as they prepare to face another challenging year ahead.