Air India posts record loss as turnaround strains mount

Air India Group posted a record annual loss of about $2.8 billion in the year ended March 2026, underscoring the scale of the financial strain facing the Tata group-owned carrier as it navigates operational disruption, safety scrutiny and a leadership transition.

The loss was disclosed by Singapore Airlines (SIA), which owns 25.1% of Air India Group following the merger of Vistara with Air India.

SIA said Air India Group’s full-year loss amounted to S$3.56 billion. Air India, which is unlisted, has not yet filed its own earnings with Indian regulators.

The figure is sharply higher than Air India’s previous-year losses. Reuters reported that Air India’s standalone loss for 2024-25 was $415 million, while consolidated losses, including Air India Express, stood at $1.13 billion.

The latest disclosure comes during a difficult period for Air India’s turnaround under Tata ownership. The airline has faced supply-chain constraints, airspace restrictions, limits on operations to key Middle East markets and elevated jet fuel prices, Singapore Airlines said in its results statement.

Air India has also been under scrutiny since the crash of Flight AI171 in Ahmedabad in June last year. The Boeing 787-8, operating from Ahmedabad to London Gatwick, crashed immediately after takeoff on 12 June, according to the Aircraft Accident Investigation Bureau’s preliminary report. Reuters reported that the crash killed 260 people.

The financial pressure has weighed on Singapore Airlines’ results.

SIA said its net profit fell 57.4% to S$1.184 billion in FY2025-26, mainly because the previous year included a S$1.098 billion one-off accounting gain from the Air India-Vistara merger and because it accounted for its share of Air India’s full-year losses.

SIA’s operating performance remained strong. The group reported record revenue of S$20.52 billion and operating profit of S$2.37 billion, up 39% from a year earlier. It also carried a record 42.4 million passengers during the year.

Singapore Airlines said it remains committed to its Air India investment, calling it a core part of its long-term multi-hub strategy and a direct stake in one of the world’s largest and fastest-growing aviation markets.

“The Company is committed to its 25.1% investment in the Air India Group,” SIA said, adding that it is working with Tata Sons to support Air India’s multi-year transformation program.

Air India’s leadership transition adds another layer of uncertainty. The airline announced in April that Chief Executive Officer and Managing Director Campbell Wilson had resigned, though he will remain in the role until a successor is announced and in place. Air India said Wilson had informed Chairman N. Chandrasekaran in 2024 of his intention to step down in 2026.

Funding is now a central question. Tata Sons Chairman N. Chandrasekaran and SIA Chief Executive Officer Goh Choon Phong met in April to discuss Air India’s funding roadmap, including the possibility of additional support, the Economic Times reported, citing people familiar with the matter.

Bloomberg separately reported in April that Air India had asked Tata Group and Singapore Airlines for funds after losses widened, with the carrier seeking shareholder support as the Dreamliner crash, Pakistan airspace closure and Middle East conflict added to its financial pressures.

SIA has also expanded commercial cooperation with Air India. From 4 May, the two airlines added one domestic and 20 international destinations to their codeshare arrangements, taking the total to 82 destinations across 27 countries and territories.

The investment, however, remains a long-term bet. SIA CEO Goh Choon Phong said Air India’s transformation is a “long game” with “no shortcut,” Reuters reported on Friday.