Air India seeks funds from Tata Group and Singapore Airlines after ₹22,000 crore loss in FY26

Air India has approached its shareholders, including the Tata Group and Singapore Airlines, seeking additional financial support after reporting a wider-than-expected loss of around $2.4 billion (₹22,000 crore) in FY26. The move comes as the airline struggles with rising costs and multiple operational disruptions that have significantly impacted its financial performance.

The airline, which is jointly owned by Tata Group and Singapore Airlines (holding around 25.1% stake), has been affected by a combination of global and regional factors. These include restricted airspace access, rising fuel prices, and disruptions caused by geopolitical tensions, all of which have increased operational expenses and reduced profitability on key international routes.

According to the airline, the financial year witnessed severe challenges, including longer flight paths due to airspace restrictions over Pakistan and parts of the Middle East, as well as a sharp rise in jet fuel costs. Earlier expectations of lower losses were revised significantly higher as operational pressures intensified throughout the year.

The airline also faced additional setbacks, including fleet disruptions and service cancellations following a major aircraft accident earlier in the year. These developments, combined with broader aviation industry pressures, have further strained its recovery efforts despite ongoing restructuring and integration measures following the merger of Vistara into Air India.

With mounting losses and leadership transitions underway, Air India is now expected to explore additional funding avenues alongside shareholder support. The airline’s financial performance remains under close scrutiny as it continues efforts to improve operational efficiency and stabilize long-term profitability under its current ownership structure.