Air India reports S$3.2 billion loss, seeks funding from shareholders SIA & Tata Group

Air India is seeking fresh funding from its shareholders, including Singapore Airlines, after reporting losses of more than US$2.4 billion (S$3.2 billion) for the latest financial year.

The losses were higher than earlier internal estimates and come amid a series of operational and geopolitical challenges.

Shareholders in talks over cash injection

According to reports by Bloomberg, Air India has approached its controlling shareholder, Tata Group, as well as Singapore Airlines, which owns a 25.1 per cent stake in the airline, for financial support.

The size of the potential capital injection is still being discussed.

However, even with shareholder backing, the funding may not be sufficient, meaning the airline could explore additional financing options.

Representatives for Tata Group and Air India didn’t respond to an email seeking comments while Singapore Air declined to comment to Bloomberg.

Series of setbacks hit airline’s recovery plans

The losses come at a critical time for the airline, which had been attempting to stabilise operations following years of restructuring, per First Post.

A combination of external factors has since derailed its recovery.

These include the closure of Pakistani airspace after the brief war between Pakistan and India in mid-2025, which forced longer and more costly flight routes, as well as disruptions caused by tensions in the Middle East, a key region for Air India’s operations.

A fatal incident involving a Boeing 787 Dreamliner, which killed more than 240 people, also impacted consumer confidence and led to adjustments in flight operations.

Rising jet fuel prices and softer demand for premium travel further added to cost pressures.

Together, these challenges prevented the airline from reaching its goal of breaking even operationally.

Leadership transition adds to uncertainty

The financial strain also coincides with leadership changes at the airline.

Chief executive officer Campbell Wilson has announced plans to step down later this year, adding another layer of uncertainty as Air India navigates its turnaround, according to The Business Times.

Despite the setbacks, the airline remains central to Tata Group’s aviation strategy.

As one person familiar with the situation said the airline’s recovery has been affected by “a series of external shocks” that quickly reversed earlier progress.

Top image via Air India