Air India seeks nearly S$1.9 billion in fresh equity from SIA & Tata months after record losses

Air India is requesting approximately S$1.9 billion in additional equity from its owners Singapore Airlines and Tata, according to Reuters. This comes just months after the airline recorded a loss of more than US$2 billion (S$2.5 billion) for the 2025-2026 fiscal year. The record loss had a significant impact on Singapore Airlines' profits, with the national carrier reporting nearly S$1 billion in losses less than two years after its 25 percent investment in Air India.

The request for fresh funds is urgent, though it's expected to be granted in installments. Singapore Airlines would need to contribute its share of the proposed infusion for the deal to proceed, a source told Reuters. Ongoing discussions have not yet resulted in a decision. An unnamed SIA executive described the situation as "an annus horribilis (a horrible year)" for Air India.

The carrier is undergoing a major transformation while also dealing with various challenges. In April, reports emerged about Air India's request for a capital injection from its major shareholders. SIA became involved in Air India in 2021 when Tata Sons, the parent company of SIA, enlisted the Singapore carrier as an unofficial adviser as India's largest conglomerate explored taking over the airline.

SIA eventually acquired a 25 percent stake in Air India and contributed S$822 million in capital early on, along with another S$167 million in March 2025. Multiple incidents, including a crash of an Air India flight in June 2025 that killed 242 people, have contributed to an overall loss of S$945 million from March 2025 to March 2026.