GURUGRAM- Tata Group-owned Air India (AI) reported a revenue increase of 11% in FY25, reaching approximately $7 billion. The airline transported 44 million passengers, marking a 9.9% rise over the previous fiscal year.
Backed by lower fuel prices, operational efficiencies, and benefits from its ongoing merger with Vistara (UK), Air India posted a positive operating profit for FY25. The figures reflect the continued progress under its multi-phase transformation strategy, Vihaan.AI.
Photo: EurospotAir India Revenue in FY25
Air India’s fiscal turnaround appears to be taking hold, with FY25 financials showing robust improvements. The carrier’s revenue rose nearly 14% year-on-year, reaching ₹61,000 crore (~$7.3 billion), according to internal reports presented to its board.
While specific operating profit figures remain undisclosed, sources confirmed with Hindu BusinessLine that EBITDAR turned positive—indicating core operational profitability.
Much of this growth is attributed to three key factors: improved fuel efficiency, strategic merger synergies with Vistara, and structural reforms under the Vihaan.AI transformation initiative.
The latter, launched post-privatization, aims to rebuild Air India into a world-class global airline over five years.
During FY24, Air India had reported ₹51,365 crore in consolidated operating revenue—an increase of 24.5% over FY23. FY25 continued this momentum, reflecting a clear trajectory toward financial stabilization.
Photo- Air IndiaExpansion and Modernization Efforts
Air India carried 44 million passengers in FY25, a notable 9.9% increase from the prior year. The airline is also preparing to induct 570 new aircraft, part of its historic order aimed at modernizing its ageing fleet and enhancing global competitiveness.
Chairman and Managing Director Campbell Wilson confirmed the airline has reached the halfway mark of its Vihaan.AI program. However, upgrading legacy aircraft has proven more complex than initially projected, causing slight delays in meeting operational targets.
Fleet renewal is central to Air India’s ambitions of becoming a dominant long-haul player, particularly on high-demand routes to North America, Europe, and Asia-Pacific.
Photo: Compounded by Aviation A2Z, Credits to Wikimedia CommonsGeopolitical Tensions Impact Flight Operations
Despite operational improvements, geopolitical challenges persist. Air India continues to navigate airspace restrictions imposed by Pakistan following India’s military operation “Sindoor” in early May.
These restrictions have added approximately one hour to westbound flights, notably affecting long-haul non-stop services.
Wilson acknowledged the impact on operational costs, stating that while non-stop connectivity remains intact, profitability is under pressure due to extended flight paths.
Additionally, global instability, such as tariffs and academic tensions between the U.S. and India, are influencing long-term planning, particularly in relation to international student traffic, a key passenger segment for Air India.
Since its privatization in 2021, Air India has undergone sweeping changes, including leadership restructuring, product upgrades, and route optimization. While the FY25 results mark significant progress, the airline’s leadership remains cautious amid ongoing supply chain delays and geopolitical headwinds.
Campbell Wilson emphasized the importance of stability in regulatory and geopolitical environments to support long-term investment and planning. Despite short-term hurdles, Air India remains optimistic about the long-term growth potential of the Indian aviation market.
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