The Air India board on Thursday reviewed the airline’s financial performance, cost management, and the succession plan regarding the next chief executive officer (CEO).
The meeting, chaired by N Chandrasekaran, comes at a time when the Tata group-owned carrier is facing higher costs of fuel and operational disruption due to the conflict in West Asia, sources said.
The airline is projected to record losses exceeding ₹22,000 crore in FY26. Those would be sharply higher than the consolidated losses of ₹10,859 crore reported for FY25.
Air India did not immediately respond to queries emailed by Business Standard.
Sources said the board discussed measures to improve profitability amid sharply higher prices of aviation turbine fuel (ATF), longer flight durations, and the continuing closure of Pakistan airspace for Indian airlines.
The worsening environment has significantly impacted Indian carriers. They have reduced 1,034 weekly international flights in May over the figure in the same period last year, a contraction of nearly 25 per cent, according to the data from aviation analytics firm Cirium.
Among Indian carriers, the pullback has been led by the Air India group.
Air India Express has seen its international operations fall from 959 to 451 weekly flights, a drop of 53 per cent. Air India has reduced its weekly international departures by 288 to just 881.
The board evaluated additional cost-management initiatives because several international routes have become less profitable because of longer routes, which have led to a higher fuel burn amid steeper ATF prices.
07/05/2026 Deepak Patel/Business Standard
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