Air India Faces ₹4,000 Crore Loss Due To Pakistan Tensions, CEO Reveals Mounting Operational Challenges

New Delhi: Air India, owned by the Tata Group, is facing severe financial turbulence due to ongoing tensions between India and Pakistan. CEO Campbell Wilson revealed that since April, the airline has incurred losses amounting to nearly Rs 4,000 crore. The reasons include not only Pakistan’s airspace closure but also changes in U.S. tariffs and visa regulations that have affected operations and demand.

Airspace Closure Deepens Impact

Following the April 22 terror attack in Pahalgam, Jammu and Kashmir—where Pakistani terrorists killed two civilians—both India and Pakistan closed their airspaces to each other’s flights. This move has severely disrupted commercial as well as military aviation. For Air India, which earns the bulk of its international revenue from routes to Europe and North America, the restrictions have been especially damaging.

As a result, flights now take longer detours, increasing travel time by about 60 to 90 minutes. This has led to higher fuel consumption and rising operational costs, adding immense pressure on the airline’s profitability.

Crash Adds to Operational Strain

Wilson also addressed the tragic June 12 crash of Air India’s Boeing 787-8 Dreamliner en route from Ahmedabad to London Gatwick. The accident deeply shocked passengers and the aviation community. However, the CEO assured that the airline has been actively providing support to all those affected.

Preliminary investigations revealed no mechanical fault in the aircraft, its engines, or its operations, indicating that external factors may have played a role.

Financial and Strategic Challenges Ahead

The combination of geopolitical tensions, longer flight routes, and regulatory hurdles has created a perfect storm for Air India. The carrier now faces the task of balancing safety, efficiency, and financial recovery amid uncertain skies.