Air India Loses US$3 Billion, Tata and Singapore Airlines Asked to Add Funds

JAKARTA - Air India is reportedly asking for additional funds from the Tata Group and Singapore Airlines after recording an annual loss of more than 220 billion rupees or around US$3 billion. The figure is larger than the company's previous internal estimates.

The Straits Times report, citing sources familiar with the discussions, said the losses occurred in the fiscal year ended March 31. The value also exceeded Air India's internal loss estimate of US$1.6 billion previously reported by Bloomberg News in January.

According to the sources, Tata Group as the controlling shareholder and Singapore Airlines which holds 25.1 percent of Air India shares are discussing a funding injection for the airline. The value is still being discussed. However, the amount is said to be less than Air India's needs, so the airline is likely to still have to find other funding.

Tata Group and Air India did not respond to requests for comment sent by email. Meanwhile, Singapore Airlines declined to comment.

This huge loss comes at a difficult time for Air India. Last week, Air India CEO Campbell Wilson announced his intention to step down by the end of 2026. In the latest annual audit of the aviation regulator, the airline was also listed as the worst in terms of safety issues. In the midst of ambitious fleet expansion plans, Air India is still struggling to boost revenue and improve service to the level expected.

The Straits Times, which was quoted on Thursday, April 16, also wrote, citing a Bloomberg News report in February, that efforts to curb losses were one of the important conditions for the approval of the third term of Tata Group Chairman, Natarajan Chandrasekaran.

In fact, according to a source quoted by the media, Air India had started the fiscal year on a positive note. In the first few weeks of April 2025, the airline posted an operating profit. The situation then changed after Pakistan closed its airspace to Indian airlines following a brief conflict in May. As a result, flights to the United States and Europe had to take longer routes.

The pressure is getting heavier after the Boeing 787 Dreamliner crash in June last year which killed more than 240 people. The incident hit Air India and prompted the airline to reduce domestic and international flights.

The sources also said that the tariffs imposed by US President Donald Trump on India, as well as the tightening of visas for foreign workers, also put pressure on Air India's performance. This series of crises thwarted the airline's target of reaching the break-even point in the fiscal year ending March 31.

In addition, Air India is said to be one of the foreign airlines most affected by the conflict in the Middle East. The region accounts for 16 percent of the airline's total capacity, but now most of its services have been halted. The conflict has also hit routes to Europe and America as flights have to take longer and more expensive routes, amid a surge in jet fuel prices.

Singapore Airlines was also affected. After becoming a minority shareholder of Air India through the merger of Vistara with the airline in 2024, SIA's performance is said to have been burdened by Air India's deteriorating performance.