Air India Seeks Funds From Tata Group After Wider-Than-Expected Loss Of $2.4 Billion In FY26

Air India has sought funding from parent Tata Group and Singapore Airlines after a wider-than-expected loss of over $2.5 billion (Rs 22,000 crore) in the last financial year.

While the Tata Group owns a major stake in the company, Singapore Airlines has a share of about 25.1 percent in India’s second-largest airline operator.

The last financial year was marked by various adverse developments for the company’s operations, which led to a wide loss, according to a report by The Economic Times.

Starting from the closure of Pakistani airspace and a deadly plane crash in the first half of the financial year, the company faced flight cancellations and heightened jet fuel prices due to the Iran war towards the end of the fiscal.

Non-availability of airspace in Pakistan and several countries in the Middle East has led to increased travel time, as flights bound for the US and Europe take longer routes.

The steep surge in jet fuel prices has further shrunk the margins of airline operators.

In these challenging conditions, the company’s chief executive, Campbell Wilson, also announced his resignation last week. The company had estimated a loss of $1.6 billion, which actually came in at $2.4 billion.

Though the amount to be sought by the airline from stakeholders is yet to be finalised, it is anticipated that it may receive a share of the required funds.

The Tata Group acquired Air India in 2022 for Rs 18,000 crore. The conglomerate also inherited a debt of Rs 15,300 crore with the deal.

For operational efficiencies and improved profitability, the group merged Vistara, its premium airline service, with Air India in 2024.

Air India’s mounting losses remain a significant concern for the Tata Group. The potential reappointment of the group’s chairman, N Chandrasekharan, is also linked to the assurance of stemming Air India’s losses.