Singapore Airlines has indicated its willingness to infuse fresh funds into Air India despite a steady string of losses. The Indian carrier posted a record annual loss of Rs 22,000 crore in FY26 — prompting bailout discussions between promoters Tata Group and Singapore Airlines. The company reported a record revenue of SG$20.5 billion for FY26 but saw net profit plunged 57.4% year-on-year to SG$1.18 billion— mainly owing to Air India’s losses and an accounting gain in the previous year.
“The Board will carefully consider any requests for additional capital from Air India, taking into consideration the Group’s other capital requirements and Air India’s business strategy,” it told the Securities Investors Association of Singapore in a regulatory filing.
SIA holds a 25.1% stake in Air India following the 2024 merger between Vistara and Air India. The group has repeatedly reaffirmed its support for the Indian carrier and signed a commercial cooperation framework agreement in January 2026 to explore opportunities for enhanced connectivity between the two nations.
Losses plague Air India
Air India racked up a wider-than-expected annual loss of more than ₹22,000 crore in FY26 amid a series of well-publicised challenges. Some of these concerns hold true across the industry — including elevated fuel prices and global supply chain constraints that delayed cabin refurbishments and new aircraft deliveries.
But the fiscal year that ended on March 31 also included the deadly crash of a Boeing 787 Dreamliner that killed more than 260 people and ongoing West Asia conflict. The closure of Pakistani airspace to Indian carriers has also lengthened flights and added to its mounting woes. SIA also flagged the steady depreciation of the Indian rupee against the US dollar as a key point of concern.
Singapore Airlines reaffirms support
Singapore Airlines noted in its response to SIAS that it was the “only non-Indian airline group with a direct stake” in the important and fast-growing market. It noted that Air India was also making “tangible progress in its transformation efforts” — with an improved experience for customers and updation of its fleet and network. It also highlighted a steady increase in operational performance.
“The Air India investment provides direct access to India’s domestic market and international flows via Indian hubs, complementing the Singapore hub and supporting growth opportunities that cannot be fully realised through a single-hub model,” SIA wrote on Monday.
The Group’s latest annual report had also reiterated its support for Air India — noting that Singapore Airlines remained “focused on the long-term rationale” of its investment .
“Air India faces headwinds, including industry-wide supply chain constraints, airspace restrictions, constraints on operations to key Middle East markets, and elevated jet fuel prices. Nonetheless, it continues to make progress in its fleet renewal and aircraft retrofit programme, initiatives to enhance the end-to-end customer experience, and efforts to strengthen operational performance,” read an excerpt from the SIA annual report.
