Air India has reported a wider-than-expected annual loss of over INR 22,000 crore ($2.4 billion or INR 220 billion) for FY26, prompting the airline to seek fresh capital support from its shareholders, including Tata Group and Singapore Airlines.
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NEW DELHI — Air India has reported a wider-than-expected annual loss of over INR 22,000 crore ($2.4 billion or INR 220 billion) for FY26, prompting the airline to seek fresh capital support from its shareholders, including Tata Group and Singapore Airlines, a report has said.
The loss for the financial year ended March 31 significantly exceeded earlier internal estimates and comes amid a series of operational and geopolitical disruptions that weighed heavily on the airline’s performance.
According to Bloomberg report, Air India is currently in discussions with its key shareholders for a potential cash infusion.
While the exact size of the funding is yet to be finalised, the report indicated that the planned support may fall short of the airline’s overall requirements.
The financial strain comes at a critical time for the airline, which has been undergoing a major transformation under the Tata Group since its acquisition.
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The situation has been further complicated by leadership uncertainty, with CEO Campbell Wilson recently announcing plans to step down later this year.
A combination of external shocks contributed to the mounting losses. These included the closure of Pakistani airspace for Indian carriers, which forced Air India to take longer and costlier routes to Europe and the United States.
Additionally, a deadly crash involving a Boeing 787 Dreamliner in June, which resulted in over 240 fatalities, severely impacted operations and led to a reduction in both international and domestic services.
The airline was also affected by global geopolitical tensions, particularly the conflict in the Middle East, which disrupted routes in a region accounting for around 16 per cent of its total capacity.
Flights to Europe and North America were further impacted, increasing operational costs at a time when jet fuel prices were rising.
The airline’s performance has also had a ripple effect on Singapore Airlines, which holds a 25.1 per cent stake following the merger of Vistara with Air India in 2024, with its earnings reportedly impacted by the carrier’s deteriorating financials.