Air India Seeks Emergency Funding from Tata Group and Singapore Airlines: Bloomberg

Air India recorded a net loss of over ₹220 billion in 2025-26, exceeding its own internal projection of $1.6 billion by a significant margin which has prompted the airline to now seek emergency funding from its controlling shareholder Tata Group and minority stakeholder Singapore Airlines, which holds a 25.1% stake, Bloomberg News reported

The report said Tata Group, and Singapore Airlines, are in active discussions to inject capital into the carrier. The size of the infusion is yet to be finalised and may fall short of what the airline requires, potentially forcing it to pursue additional financing options, according to Bloomberg's sources.

A succession of external shocks through the year eroded the airline's financials on multiple fronts. Pakistan's airspace closure in May pushed Air India onto longer, more expensive routes to the US and Europe. A Boeing 787 Dreamliner crash in June, which killed more than 240 people, forced the carrier to reduce both international and domestic services. Ongoing Middle East hostilities have grounded a region that accounts for 16% of Air India's total capacity, while rising jet fuel costs, US tariffs on India, and tightening foreign worker visa rules added further strain.

The airline had entered 2025-26 with some optimism, posting operating profits in the first weeks of April 2025, before the Pakistan airspace closure derailed momentum.

The losses come at a particularly sensitive moment for the carrier. CEO Campbell Wilson announced last week his intention to step down later this year. Air India was also ranked lowest on safety in the aviation regulator's most recent annual audit. Bloomberg News reported in February that stemming Air India's losses has been set as a condition for approving a third term for Tata Group Chairman Natarajan Chandrasekaran.

Singapore Airlines, which acquired its minority stake following the merger of Vistara with Air India in 2024, has seen its own earnings affected by the airline's deteriorating performance.

Tata Group and Air India did not respond to requests for comment. Singapore Airlines declined to comment.