Air India is considering deferring aircraft deliveries and cutting flights to reduce financial pressure.
The airline’s losses are expected to widen further in FY26 after sharp losses in FY25.
The move signals a shift from aggressive expansion to cost-focused restructuring under Tata Group ownership.
Air India is weighing plans to slow expansion, including delaying aircraft deliveries and cutting flights, as Tata Group pushes the airline to focus on reducing record losses, Bloomberg reported, citing people familiar with the matter.
Accroding to the report, Air India has been working with Airbus SE and Boeing Co. to discuss delaying deliveries of as many as 500 aircraft. The airline had previously placed combined orders for around 600 aircraft in 2023 and 2024, followed by additional orders earlier this year. Most of these deliveries were originally scheduled for 2027 and 2028.
1 June 2026
Get the latest issue of Outlook Business
Losses Mount as Expansion Costs Rise
Reports have said Air India posted its highest-ever loss after returning to Tata ownership in January 2022. According to Tata Sons’ annual report, the airline reported a net loss of about ₹10,859 crore in FY25.
For FY26, several reports suggest losses could widen further to nearly ₹28,000 crore. The increase is expected to be driven by aircraft upgrade costs, integration-related expenses and ongoing restructuring efforts as the airline modernises operations.
These financial pressures come at a time when Air India is also dealing with higher fuel costs, currency weakness and operational disruptions linked to geopolitical tensions and airspace restrictions.
Route Cuts and Delivery Delays
According to Bloomberg report, Air India is also reevaluating its network expansion, including new domestic and international routes. Some planned launches, including operations linked to new airports such as Noida International Airport near Delhi, may be postponed.
The airline has already announced flight reductions in recent months due to external disruptions, including conflict-related airspace closures and rising operating costs. Discussions are ongoing with aircraft manufacturers to manage delivery schedules and reduce near-term cash outflows.
