Air India suffered a record loss of $ 1.6 billion after the fatal accident.

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Air India Ltd. is set to report a record annual loss after last year’s deadly crash and airfield closures, according to people familiar with the matter.

The carrier, which is a joint venture between the Tata Group and Singapore Airlines Ltd., is on track to post a loss of at least 150 billion rupees ($1.6 billion) for the year ending March 31, the people said, speaking on condition of anonymity to discuss private information.

He said earnings were further hit by Pakistan closing its airspace to Indian airlines following the military clash with India, forcing carriers to fly longer routes to Europe and the US at higher costs.

The reversal is particularly evident as Air India was returning to profitability before the June Dreamliner crash – which killed more than 240 people – without years of progress. The founders had targeted operating break-even this fiscal year, but profitability is now out of reach, the people said.

The losses come after a tumultuous year for Indian aviation, including passenger concerns, flight delays and mass cancellations by a rival carrier that have highlighted the monopolistic market structure.

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Spokespeople for Air India, Tata Group and Singapore Airlines did not respond to emailed requests for comment on the losses.

A new five-year plan presented by management had projected profits only in the third year, but it was rejected by the board, which has called for more aggressive changes, the people said.

Government filings compiled by business intelligence platform Tofler show Air India has suffered a loss of Rs 322.1 billion in the last three years. Bloomberg News reported in October that the airline had sought at least Rs 100 billion in fresh support last year.

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The mounting losses are now a matter of concern for both the owners. Tata Group has begun the search for a new chief executive officer to replace Campbell Wilson, although the search may not end until the accident report is released.

Singapore Airlines Ltd., which picked up a 25.1% stake in Vistara after it merges with Air India in 2024, has seen its earnings fall from the carrier’s performance while it helps Air India bring aircraft maintenance in-house as part of a restructuring plan.