India, Jan. 23 -- Tata Group-owned Air India is set to post an annual loss following a series of setbacks, including last year's deadly crash and airspace disruptions, erasing much of the progress made toward its long-awaited turnaround, media reports said.

The full-service carrier-jointly owned by the Tata Group and Singapore Airlines Ltd.-is on track to report a loss of at least Rs.150 billion ($1.6 billion) for the financial year ending March 31, according to people familiar with the matter cited by Bloomberg.

Earnings were further strained after Pakistan closed its airspace to Indian airlines following a military confrontation, forcing carriers to operate longer, costlier routes to Europe and the United States, the sources said.

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