Modi govt failed policies losing investors confidence as Air India losses cross $2 billion: Singapore airlines report

New Delhi (Web Desk): Air India, India’s largest airline, has reported that its annual losses have crossed $2 billion, reflecting growing financial pressure on the carrier.

The development has sparked renewed concerns among global financial observers about the airline’s outlook.

According to reports, ongoing tensions in the region and restrictions on certain air routes, including the closure of Pakistani airspace at different times, have affected Air India’s international operations.

These disruptions have forced longer flight routes, leading to higher fuel consumption and increased operational costs, pushing the airline closer to significant financial strain.

A recent report by major shareholder Singapore Airlines highlighted the mounting financial burden on Air India.

It noted that extended flight paths used as alternatives to restricted airspace have substantially increased costs, which may be affecting investor confidence.

Economic analysts say that rising operational expenses and external geopolitical factors are adding pressure on the airline’s balance sheet.

They also suggest that these challenges could have broader implications for foreign investment sentiment in the sector if the situation persists.