Air India faces mounting pressures ahead of final Ahmedabad crash report

New Delhi : Indian carrier Air India is facing increasing operational and financial strain as the aviation industry awaits the final investigation report into last year's fatal Ahmedabad crash, expected to be released within a month.

The Aircraft Accident Investigation Bureau (AAIB) is set to publish its final findings on the crash of flight AI 171, which went down shortly after takeoff from Ahmedabad on June 12, 2025, killing 260 people.

As the industry anticipates the report, Air India is grappling with multiple challenges, including leadership instability, rising losses, operational disruptions, and ongoing safety concerns.

The airline recently saw the mid-term resignation of its chief executive Campbell Wilson, while reported losses for the year ending March 2026 have reached around USD 2.4 billion, according to industry estimates. The carrier remains the largest loss-making entity under the Tata Group, which acquired it from the Indian government in 2022.

Analysts said, the leadership gap comes at a critical time, with the airline's long-term turnaround plan under pressure due to implementation delays and rising operational costs.

Air India has also faced a series of operational setbacks, including a long-haul flight to Vancouver returning to Delhi due to airspace clearance issues, as well as multiple safety concerns flagged by India's aviation regulator in recent audits.

In addition, fleet expansion has been slowed by global aircraft supply chain constraints, while several international routes have been reduced, affecting revenue performance. Currency depreciation against the US dollar has  further increased operational costs, particularly fuel and leasing expenses.

Industry experts said, the airline will likely require additional financial support from its shareholders, including the Tata Group and Singapore Airlines, which holds a minority stake.