According to reports from Reuters, Air India is seeking approximately $1.5 billion in fresh equity from its owners Tata Sons and Singapore Airlines. This would represent one of the airline's largest publicly reported requests for shareholder funding since Tata took control of the former state-owned carrier in 2022. The funding is being sought in the form of fresh equity, with discussions ongoing but no decision taken on the request. As per Reuters, "Air India wants the funds immediately, though the infusion is likely to happen in tranches. Singapore Airlines would need to contribute its share of the proposed infusion for the investment to go through." Air India and Tata Sons did not respond to Reuters requests for comment, while Singapore Airlines declined to comment on the airline's finances but said it was working closely with Tata Sons to support Air India's transformation programme. The funding request comes more than a year after Tata Sons halted fresh equity injections into the airline, as reported by The Times of India.
As reported by Reuters, the carrier and its budget unit Air India Express posted combined losses of $2.33 billion in the fiscal year ended March, representing more than double the prior year's losses. Singapore Airlines' annual report in May showed the scale of the financial strain at Air India, with the airline group recording a loss of 3.56 billion Singapore dollars for the year ended March, equivalent to about $2.80 billion using the exchange rate prevailing in May. Air India reported a loss of ₹22,238 crore in FY2026, more than double the previous year's deficit and the largest among Tata Group companies, according to The Times of India. The losses have also weighed on Singapore Airlines' earnings, highlighting the significant financial challenges facing the airline as it undergoes its multi-billion-dollar revamp program. According to Reuters sources, "It would be one of Air India's largest publicly reported requests for shareholder funding since Tata took control of the former state-owned carrier in 2022. It highlights the challenges facing the airline as it undergoes a multi-billion-dollar revamp, including the refurbishment of its existing fleet."
According to PTI, Singapore Airlines has confirmed that its 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. An SIA spokesperson stated that "SIA's 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." The spokesperson added that SIA Group's capital allocation follows a disciplined evaluation process that considers its operating cash flow, investment requirements in new aircraft and products, as well as multi-hub investments such as Air India, to support sustainable long-term growth and returns. Singapore Airlines currently holds a 25.1% stake in Air India, which was acquired by the Tata Group in January 2022. However, concerns have been raised by Singapore's Member of Parliament Kenneth Tiong Boon Kiat, who flagged questions about Singapore Airlines investing more in Air India and whether this would impact Temasek's sovereign wealth fund. Tiong also referred to Tata Sons Chairman N. Chandrasekaran's comments that Air India's turnaround could take five to ten years and said a source cited in the report expects the airline's capital requirements to continue for years.
Singapore opposition MP Kenneth Tiong Boon Kiat has strongly opposed using Temasek's funds to meet Air India's capital request, stating that "No one, least of all Singaporeans, owes Air India a living. I will not support, nor expect, any future use of Temasek's funds to prop up AI via SIA." As reported by The Times of India, Tiong questioned whether these losses have been assessed against SIA's capacity to provide essential transport services and asked the Singapore government whether these losses have been properly evaluated. The opposition Workers' Party legislator noted that Tata Sons' chairman has said the turnaround could take up to a decade, and that the same chairman steps down in February, raising concerns about the airline's future direction. Tiong's comments come as Singapore Airlines went into the red last quarter despite record revenue, highlighting the challenging operating environment facing the airline group.
According to Reuters, Air India's finances have come under further pressure due to multiple operational disruptions, including Pakistan's ban on Indian carriers using its airspace and disruptions to its international network caused by war in the Middle East. The airline has also faced fallout from a deadly crash last year that killed 260 people. Air India has been the worst-hit Indian carrier from the closure of Pakistani airspace since last April, given the volume of flights it runs west from its Delhi hub — from UAE to North America, as reported by The Times of India. Air India's flight cuts have benefited foreign carriers, with Lufthansa Group and Cathay Pacific among airlines adding services to one of the world's fastest-growing aviation markets. Singapore Airlines said surging fuel costs linked to the Iran war were still "filtering through" and would weigh more heavily in the year ahead. The airline has also sought to defer deliveries of hundreds of jets on order from Airbus and Boeing as Tata presses the carrier to cut costs and reduce record losses.
