Air India Ltd. is set to report a record annual loss after last year’s deadly crash and airspace shutdowns wiped out progress toward a turnaround, 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, said the people, who asked not to be identified discussing private information. Earnings were further hit by Pakistan’s closure of its airspace for Indian airlines following a military clash with India, forcing carriers to fly longer routes at higher costs to Europe and the US, they added.