Newsletter
It’s been a tough year for Air India, no two ways about it.
What’s happening: the Tata-owned airline racked up losses of over ₹22,000 crore (about $2.4 billion) in the financial year ending March 2026.
Behind the scenes, there’s a scramble to steady the ship. The CEO of Singapore Airlines met Tata Group executives, and both shareholders are now in talks to inject fresh capital into the airline. Singapore Airlines, which owns a 25.1% stake, is also part of these discussions.
The problem? The final amount of funding is still unclear. And even if both Tata and Singapore Airlines step in, it might not be enough. That means Air India could still need to borrow more or explore other ways to raise money.
So, what went wrong: a mix of global disruptions and internal setbacks. For starters, the temporary closure of Pakistani airspace forced Air India to take longer routes on key international flights.
Longer routes = more fuel burn = higher costs. Add to that the tensions in the Middle East, which disrupted a crucial transit region, and things only got more expensive and unpredictable.
Adding to that, a fatal incident last year involving a Boeing 787 Dreamliner that killed more than 240 people. That shook passenger confidence and forced the airline to tweak its network. On top of that, rising jet fuel prices and weaker demand for premium travel didn’t help either.
And this isn’t just an Air India problem, it’s a Tata Group problem too. Reports suggest that getting Air India’s losses under control is tied to whether Group Chairman Natarajan Chandrasekaran gets a third term.
Singapore Airlines is also feeling the heat. After merging Vistara with Air India in 2024 and becoming a minority shareholder, its own earnings are now taking a hit because of Air India’s struggles.
To make matters trickier, there’s a leadership gap looming. CEO Campbell Wilson has announced he’ll step down later this year, leaving the airline without a permanent head at a critical time.
And if that wasn’t enough, Air India recently ranked last in safety in the DGCA’s annual audit, a serious setback for an airline that’s been investing heavily in customer confidence, growth and fleet expansion.
Bottom line: Air India is juggling losses, leadership changes, and operational challenges, all at once. And turning things around won’t be easy.
