Air India seeks nearly S$1.9 billion in fresh equity from SIA & Tata months after record losses

Air India is seeking US$1.5 billion (S$1.9 billion) in fresh equity from owners Singapore Airlines and Tata just months after recording a loss of more than US$2 billion (S$2.5 billion) for the 2025 to 2026 fiscal year, Reuters reported.

The carrier's record loss weighed down on SIA's own profits, with Singapore's national carrier posting nearly S$1 billion in losses less than two years after its 25 per cent investment in the airline.

No decision made on request: Reuters

"Air India wants the funds immediately, though the infusion is likely to happen in tranches. Singapore Airline's would need to contribute to its share of the proposed infusion to go through," one source told Reuters.

Discussions are ongoing and there has been no decision on the request.

An unnamed SIA executive has called it an "annus horribilis (a horrible year)" for Air India, the Financial Times previously reported.

They added: "Air India is trying to undergo a major transformation — the likes of which have probably never been seen in the airline industry — while also dealing with all these other issues."

Reports also surfaced in April about Air India's request for capital injection from its major shareholders.

Background

SIA was first enlisted by India's largest conglomerate Tata Sons, who hold the other 75 per cent in Air India, as an unofficial adviser when the latter began exploring taking over Air India in 2021.

SIA jumped onboard, eventually owning 25 per cent of the Indian carrier.

SIA's management reportedly contributed S$822 million of capital to Air India in the early days, then another S$167 million in March 2025.

Multiple incidents have since affected the carrier, contributing to an overall loss of S$945 million from March 2025 to March 2026.

In June 2025, an Air India flight bound for London crashed after take-off, killing 242 people.

SIA has since stepped up its operational involvement in India's national carrier.