Air India, owned by India’s Tata Group, has reported a massive annual loss of around $2.8 billion for the 2025–26 financial year, highlighting ongoing financial and operational challenges in its turnaround strategy.
The figure, equivalent to about 3.56 billion Singapore dollars, was disclosed by Singapore Airlines (SIA), which holds a 25% stake in Air India, in its latest annual report. The loss represents the airline’s largest annual deficit since its takeover by the Tata Group from the Indian government in 2022.
According to SIA’s filing, the Air India Group—which includes both full-service and low-cost operations—posted losses of SG$3.56 billion for the year ending March 31, 2026. The disclosure reflects SIA’s share of Air India’s financial performance, which has significantly impacted its own earnings.
Several operational pressures contributed to the widening losses. These include geopolitical disruptions such as airspace restrictions due to Middle East tensions and the continued closure of Pakistani airspace for Indian carriers, which has forced longer and more expensive flight routes. Rising jet fuel prices and a strong US dollar have also added to cost pressures, particularly on international operations.
In response, Air India has begun scaling back certain international routes, with some suspensions expected to continue until at least August 2026. The airline says these adjustments are aimed at improving operational stability and reducing disruptions while it reorganizes its network.
Despite the losses, the airline remains in the middle of a major restructuring program under Tata Group ownership. Since 2022, efforts have included fleet expansion through large aircraft orders, the merger of Vistara into Air India, cabin and service upgrades, and extensive operational and technological reforms.
Singapore Airlines has reiterated its commitment to the partnership, although auditors have flagged potential impairment risks linked to its investment due to ongoing financial strain and geopolitical uncertainty.
Air India has not yet published detailed standalone financial statements in India, making external disclosures the primary source of insight into its current financial position.
