mumbai/new delhi, March 28 -- Air India Express has raised its borrowing limit by 25% to Rs.17,500 crore to fund near-term and next-fiscal operations, marking its third increase since merging AirAsia India in 2024 and underscoring continued turbulence at the Tata Group's low-cost carrier. The move signals deepening financial strain at the budget airline, which has seen losses widen sharply even as revenue grows. With crude prices rising and West Asian airspace closures disrupting operations, the higher borrowing ceiling gives the airline breathing room to manage cash flows-but also highlights the mounting pressure on the Tata Group's aviation bet. "In order to manage Q4 (January-March 2026) cash flows and support the annual operating plan, it is proposed to enhance the overall borrowing limits by Rs.3,500 crore," said a special resolution passed by Air India Express shareholders at a meeting on February 24 and filed with the ministry of corporate affairs on March 20. Under the Companies Act, 2013, a special resolution requires approval by at least 75% of the votes cast by shareholders. "The airline has increased borrowing limits and it is perhaps also an indication that it wants to expand. The Middle East conflict has severely impacted its operations and profitability. May be it will try to increase domestic operations or tap the Indian market more, specially the smaller city-larger city routes, and is accordingly making provisions for funds. It is also not necessary they will be using the entire borrowing limit, it could be just an enabling provision too," said G.S. Bawa, secretary general, Air Travellers Association (ATA), a consumer rights group. Air India Express did not respond to Mint's queries. Air India Express, a wholly-owned subsidiary of Air India, first raised its borrowing limit to Rs.11,600 crore in October 2024, followed by a further increase to Rs.14,000 crore in November 2024. The airline ended March 2025 with Rs.10,087.4 crore in debt (excluding lease liabilities). With the revised ceiling, it can now borrow up to Rs.17,500 crore-a figure that would exceed its Rs.16,033 crore revenue last year. Revenue rose 26% year-on-year to Rs.16,033 crore in FY25. However, losses expanded more than fourfold to Rs.5,822 crore. Debt (excluding lease liabilities) jumped 61% from Rs.6,261.7 crore a year earlier to Rs.10,087.4 crore. Put simply, Air India Express lost about Rs.36 on every Rs.100 of revenue. In comparison, parent Air India's revenue rose 13% to Rs.61,080 crore in FY25. Under chief executive officer Campbell Wilson, it cut losses to Rs.3,976 crore from Rs.5,031 crore a year earlier-translating to a loss of roughly Rs.6.5 for every Rs.100 earned....