Mumbai/New Delhi, March 27 -- 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 pl...