Air India reported a loss of $2.8 billion for the financial year 2025–26, making it the airline’s biggest annual loss since it came under the Tata Group in 2022. The figure was shared by Singapore Airlines in its annual financial statements released on Thursday.
The airline is also temporarily reducing and suspending some international routes till August 2026 as rising costs and airspace restrictions continue to affect operations.
According to Singapore Airlines’ annual report, Air India recorded losses of 3.56 billion Singapore dollars during the financial year. At current exchange rates, this comes to around $2.8 billion.
The airline said the loss was the largest since the Tata Group bought Air India in 2022.
Singapore Airlines, which owns a 25.1% stake in the Air India Group, said it and sees Air India as an important 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. SIA is working closely with its partner Tata Sons to support Air India’s multi-year transformation programme,” said the airline.
Singapore Airlines also mentioned that Air India continues to face several challenges. These include supply chain problems affecting the aviation industry, airspace restrictions, limits on flights to important Middle East markets, and high jet fuel prices.
However, the company said Air India is making progress in renewing its fleet, upgrading aircraft interiors, improving customer experience and strengthening operational performance.
Singapore Airlines also said its own net profit fell sharply during the year.
“The Group’s net profit declined by $1,594 million (-57.4%) to $1,184 million, primarily due to the absence of the $1,098 million non-cash accounting gain recognised in November 2024 upon the completion of the Air India-Vistara merger. The swing from a share of profits of associated companies last year to a loss this year (-$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,” it mentioned.
Meanwhile, recently, Air India has announced on several international routes till August 2026.
The airline said long airspace restrictions and record-high jet fuel prices have affected the commercial viability of some services, forcing temporary changes. According to Air India, the move is aimed at improving network stability and reducing last-minute inconvenience for passengers.