After record loss, Air India seeks $1.5 billion fresh funding from Tata, Singapore Airlines
The proposed funding would be one of the biggest shareholder infusions sought by Air India since the Tata Group took control of the airline in 2022
- Aug 25, 2026,
- Updated Aug 25, 2026 8:02 PM IST
Air India is seeking about $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, Reuters reported on Tuesday, citing sources. This comes months after the airline posted a record annual loss.
Air India and Air India Express reported combined losses of $2.33 billion for the financial year ended March, more than double the previous year's losses. The losses have also weighed on Singapore Airlines' profits.
The proposed funding would be one of the biggest shareholder infusions sought by Air India since the Tata Group took control of the airline in 2022. The money is expected to be used as the carrier continues a costly overhaul of its fleet and operations.
Air India wants the funds immediately, although the money could be injected in tranches, two sources told Reuters. Singapore Airlines, which holds about 25% of Air India, would have to contribute its share for the proposed infusion to proceed.
Discussions are still underway, and no final decision has been made, the report said.
A Costly Turnaround
Air India's losses have come as it faces several disruptions to its international operations. Pakistan's closure of its airspace to Indian carriers and the West Asia war have also hurt Air India's operations.
At the same time, Tata is pushing Air India to reduce costs and bring down its losses. The airline has sought to defer deliveries of hundreds of aircraft ordered from Airbus and Boeing, Reuters reported earlier this year.
Tata Sons Chair N Chandrasekaran has said the turnaround could take as long as a decade, pointing to supply-chain problems and the need to overhaul Air India's legacy systems, culture, and fleet.
"Air India is expected to continue requiring capital infusions in the coming years," Reuters quoted one of the sources as saying.
Singapore Airlines said it was working closely with Tata Sons to support Air India's transformation programme but declined to comment on the airline's finances.
Chandrasekaran is due to step down as Tata Sons chair in February next year.
Air India is seeking about $1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, Reuters reported on Tuesday, citing sources. This comes months after the airline posted a record annual loss.
Air India and Air India Express reported combined losses of $2.33 billion for the financial year ended March, more than double the previous year's losses. The losses have also weighed on Singapore Airlines' profits.
The proposed funding would be one of the biggest shareholder infusions sought by Air India since the Tata Group took control of the airline in 2022. The money is expected to be used as the carrier continues a costly overhaul of its fleet and operations.
Air India wants the funds immediately, although the money could be injected in tranches, two sources told Reuters. Singapore Airlines, which holds about 25% of Air India, would have to contribute its share for the proposed infusion to proceed.
Discussions are still underway, and no final decision has been made, the report said.
A Costly Turnaround
Air India's losses have come as it faces several disruptions to its international operations. Pakistan's closure of its airspace to Indian carriers and the West Asia war have also hurt Air India's operations.
At the same time, Tata is pushing Air India to reduce costs and bring down its losses. The airline has sought to defer deliveries of hundreds of aircraft ordered from Airbus and Boeing, Reuters reported earlier this year.
Tata Sons Chair N Chandrasekaran has said the turnaround could take as long as a decade, pointing to supply-chain problems and the need to overhaul Air India's legacy systems, culture, and fleet.
"Air India is expected to continue requiring capital infusions in the coming years," Reuters quoted one of the sources as saying.
Singapore Airlines said it was working closely with Tata Sons to support Air India's transformation programme but declined to comment on the airline's finances.
Chandrasekaran is due to step down as Tata Sons chair in February next year.