The loss marks Air India’s biggest annual loss since the airline was acquired by the Tata Group in 2022

Indian carrier Air India reported a loss of S$3.56 billion, or around $2.8 billion at current exchange rates, in 2025-26, which marked its largest annual loss since the Tata Group regained control of the airline in 2022.

 

The figures were disclosed by Singapore Airlines in its annual financial statements released on Thursday. Singapore Airlines holds a 25.1 per cent stake in the Air India Group following the merger of Vistara with Air India – which was formerly India’s state-run national carrier – in November 2024.

 

According to a PTI report, Singapore Airlines Group’s net profit fell 57.4 per cent year-on-year to S$1.184 billion in the financial year ended March 2026, compared with S$2.778 billion in the previous year.

 

The airline group said the decline was mainly due to the absence of a one-time accounting gain linked to the Air India-Vistara merger and the impact of Air India’s losses.

 

“The swing from a share of profits of associated companies last year to a loss this year (SGD 846 million) was due to the Group accounting for its share of Air India’s full year losses, versus only four months the previous year,” Singapore Airlines said in a release, cited by PTI.

 

The company added that the previous year’s earnings had included a non-cash accounting gain of SGD 1.098 billion recognised after the completion of the Air India-Vistara merger.

 

Singapore Airlines said it remained committed to its investment in Air India as part of its long-term strategy.

 

“This strategic investment provides the Group with a direct stake in one of the world’s largest and fastest-growing aviation markets, complementing its Singapore hub and strengthening its long-term growth,” the company said. “SIA is working closely with its partner Tata Sons to support Air India’s multi-year transformation programme,” it added.

 

Air India has been facing pressure from rising jet fuel prices, airspace restrictions over Pakistan and in the West Asia region, and broader supply chain constraints affecting the broader aviation industry.

 

“Air India faces headwinds such as industry-wide supply chain constraints, airspace restrictions, constraints on operations to its key Middle East markets, and elevated jet fuel prices,” it added.

 

However, Singapore Airlines said Air India continued to make progress in fleet renewal, aircraft retrofits, customer experience initiatives and operational improvements.

 

PTI reported that the Air India Group, which includes Air India and Air India Express, is projected to have incurred losses of more than ₹22,000 crore in financial year 2025-26.

On Wednesday, Air India announced cuts to nearly 100 international flights and the temporary suspension of services on six overseas routes, including the Delhi-Chicago sector, as the airline seeks to reduce operational costs amid airspace curbs and high jet fuel prices.