Air India has cancelled all flights to and from New York and Newark for January 25-26, citing safety concerns over a severe winter storm forecast for the US East Coast. The airline announced the decision prioritizing passenger and crew safety amid predictions of heavy snowfall.

Storm Impact and Safety Measures

The airline issued a statement on Saturday warning of a severe winter storm with heavy snow forecast for New York, New Jersey, and adjoining areas on the US East Coast. The weather system is expected to impact the region from early Sunday morning through Monday, creating significant disruptions to flight operations.

"In view of the safety, well-being and convenience of our passengers and crew, all Air India flights to and from New York and Newark have been cancelled on 25 and 26 January," the airline announced on social media platform X.

Affected Route Network

The cancellations will impact Air India's comprehensive US East Coast operations:

Operational Considerations

The proactive cancellation decision reflects Air India's commitment to passenger safety over operational continuity. The airline's extensive network to the US East Coast typically maintains high frequency services, making the two-day suspension a significant operational adjustment.

The winter storm's timing and intensity prompted the airline to make advance cancellations rather than risk last-minute disruptions or safety compromises. This approach allows passengers to make alternative arrangements and reduces potential airport congestion during the severe weather period.

Air India is projected to report a record annual loss of ₹15,000 crore in FY26, marking one of the most challenging periods in the airline's history. The substantial losses stem from the tragic AI171 aircraft crash and operational disruptions caused by airspace closures during military operations.

Financial Impact and Operational Challenges

The airline's financial performance has been severely impacted by multiple factors converging throughout the fiscal year. According to a Bloomberg report, the losses account for both the AI171 crash and subsequent airspace shutdowns that forced the carrier to adopt longer, more expensive international routes.

During Operation Sindoor, Indian carriers were forced to take longer routes to Europe and the US, resulting in substantially higher operational costs. The airspace restrictions created additional financial strain on an already challenging operational environment.

The Ahmedabad Tragedy

The June 12 aircraft crash remains a defining moment for Indian aviation. Air India flight AI171, a Boeing 787-8 aircraft bound for London Gatwick, crashed into a medical college hostel complex shortly after takeoff from Sardar Vallabhbhai Patel International Airport in Ahmedabad.

The Aircraft Accident Investigation Bureau (AAIB) released a preliminary report on July 12, indicating that fuel supply to both engines was cut off within a one-second gap, causing cockpit confusion immediately after takeoff. The final investigation report is still awaited.

Corporate Restructuring and Stakeholder Impact

The mounting losses have created significant concerns for Air India's shareholders. Tata Group has initiated a search for a new Chief Executive Officer to succeed Campbell Wilson, though this process remains on hold pending the release of the crash investigation report.

Singapore Airlines, which acquired a 25.1% stake following the merger of Vistara with Air India in 2024, has experienced earnings pressure due to the airline's weak performance. Despite these challenges, Singapore Airlines continues supporting Air India's restructuring efforts, including plans to bring aircraft maintenance operations in-house.

Recovery Efforts and Victim Support

Seven months after the crash, Air India has begun returning personal belongings to affected families. The airline has preserved and catalogued over 22,000 personal items with meticulous care, working with qualified external partners to ensure dignity and accuracy in the process.

The associated items include passports and documents that can be linked to specific individuals, while un-associated items cannot be connected to particular passengers.

Airspace Restrictions Impact

Operation Sindoor resulted in mutual airspace closures between India and Pakistan starting April 30, following the Pahalgam terror attack on April 22 that killed at least 26 people. India closed its airspace to Pakistani airlines while Pakistan barred Indian carriers from using its airspace, forcing costly route diversions for international flights.

The combination of the tragic aircraft accident, operational disruptions, and increased route costs has created unprecedented financial challenges for Air India, resulting in what is expected to be the carrier's largest annual loss in FY26.

Source: https://www.etnownews.com/companies/air-india-stares-at-rs-15000-crore-loss-in-fy26-due-to-ahmedabad-plane-crash-airspace-closures-article-153488139