Air India's board is scheduled to meet on May 7 in Mumbai to address multiple critical issues facing the Tata Group-owned airline. According to reports from Press Trust of India, The Economic Times, ETInfra, and Moneycontrol, the board meeting will be chaired by Tata Sons Chairman N Chandrasekaran and will focus on cost-saving measures, CEO succession plans, financials for the 2025-26 fiscal year, and other strategic matters. The meeting comes as the airline continues its ambitious transformation plan amid challenging market conditions and significant financial losses.
The airline is projected to have incurred more than ₹22,000 crore loss in the financial year ended March 2026, as reported by Press Trust of India, The Economic Times, ETInfra, and Moneycontrol. Headwinds have multiplied with the West Asia conflict, which has forced the airline to take longer routes for many international destinations, resulting in increased fuel burn. Airspace restrictions have significantly impacted operations, with the airline's international flights becoming unprofitable due to massive jet fuel price increases and airspace closures. As per The Economic Times and ETInfra, on April 26, Air India, IndiGo, and SpiceJet told the government that the country's airline industry is under extreme stress and on the verge of stopping operations. The strain is not limited to Indian carriers, with International Air Transport Association chief Willie Walsh warning on April 29 of potential jet fuel shortages in Asia and Europe in coming months. In the monthly revision of aviation turbine fuel (ATF) prices on May 1, jet fuel prices for international flights were hiked by little over 5%.
The board is expected to discuss the selection of the next CEO for the airline, in which Singapore Airlines has a 25.1% stake. According to sources cited by Press Trust of Inc, The Economic Times, ETInfra, and Moneycontrol, various names including Air India and Singapore Airlines executives as well as possible European candidates are being considered for the position. There could even be the possibility of having a joint MD or CEO for the airline. The current incumbent, Campbell Wilson, will be stepping down later this year after serving as CEO. Apart from Chandrasekaran and Wilson, Singapore Airlines CEO Goh Choon Phong and four others — Sanjiv Mehta, Alice Vaidyan, P R Ramesh, and P B Balaji — are members of the Air India board. Sources suggest the airline may be evaluating multiple candidates, including internal executives and international contenders.
As part of stringent measures to save costs amid spiralling jet fuel prices, Air India is considering unbundling meals from tickets as well as lounge access for business class travellers. According to ETInfra, the airline will be able to offer different fare categories where passengers do not prefer to have meals, and business class passengers will have the option to choose lounge access. These measures are currently being mulled and a final decision has not been taken on implementation. Wilson had told staff on May 1 that the airspace and jet fuel price situation remains extremely challenging, stating that massive rise in jet fuel prices together with airspace closures and longer flying routes has caused many of their international flights to become unprofitable to operate. The airline has also increased airfares and imposed fuel surcharges to partially compensate for cost spikes, though higher fares impact customer demand. Wilson had indicated that cuts in international flights happened in April and is continuing in May, with the situation leaving the airline with no choice but to further trim schedules for June and July.
The airline industry is facing extreme stress globally due to the West Asia turmoil, with many carriers implementing cost-cutting measures. According to Press Trust of India, The Economic Times, ETInfra, and Moneycontrol, on April 26, Air India, IndiGo, and SpiceJet told the government that the country's airline industry is under extreme stress and on the verge of stopping operations. In the monthly revision of aviation turbine fuel (ATF) prices on May 1, jet fuel prices for international flights were hiked by little over 5%. Wilson had indicated that cuts in international flights happened in April and is continuing in May, with the situation leaving the airline with no choice but to further trim schedules for June and July. While domestic flights have been significantly affected, the profitability impact is lower due to the government's limitation of domestic fuel price rise to 25%. The strain is not limited to Indian carriers, with some global airlines like US-based Spirit Airlines already shutting operations due to similar challenges. Global airlines' grouping IATA's chief Willie Walsh on April 29, said there could be shortages of jet fuel in Asia and Europe in the coming months, and that the extraordinarily high fuel costs are increasingly being reflected in ticket prices.
