Air India Posts Record Annual Loss Above $2 Billion, Shareholder Results Reveal

Air India has reported a record annual loss exceeding $2 billion for the 2025–26 financial year, according to newly released shareholder disclosures from Singapore Airlines, which holds a 25% stake in the carrier.

The results, published in Singapore Airlines’ annual report, show Air India Group recorded a loss of 3.56 billion Singapore dollars, equivalent to $2.80 billion, for the 12 months ending March 2026.  This marks the airline’s largest loss on record and a significant setback to its ongoing turnaround efforts under Tata Group ownership.

According to the filings, the financial performance was heavily impacted by geopolitical disruptions, including the Iran conflict and Pakistan’s continued ban on Indian carriers using its airspace, which forced Air India to reroute or cut numerous international services.  These operational constraints, combined with industry‑wide supply chain pressures and elevated fuel prices, contributed to the steep losses.

The airline’s previous year’s loss stood at ₹39.75 billion (approximately $415 million), underscoring the scale of the deterioration.  Air India has not yet filed its latest earnings with Indian regulators and declined to comment on the figures reported by its shareholder.

The downturn has also prompted auditors to flag “indicators of impairment” in Singapore Airlines’ investment in Air India, citing the challenging operating environment and heightened uncertainty.

Air India’s reduced international capacity has opened opportunities for foreign carriers, with Lufthansa Group and Cathay Pacific among those expanding services into India—now one of the world’s fastest‑growing aviation markets.

Despite the setback, Singapore Airlines reaffirmed its commitment to the joint venture, noting that Air India continues to face structural headwinds but remains a strategically important investment.