Air India, owned by Tata Group and partly backed by Singapore Airlines, has requested additional financial support from its shareholders after reporting a massive loss of more than US$2.4 billion for the latest financial year. The development highlights ongoing financial pressure on the airline despite its continued restructuring under private ownership.

 

According to sources familiar with the matter, the loss for the fiscal year ending March 31 exceeded earlier internal expectations, raising concerns about the pace of Air India’s turnaround strategy. The airline, which is undergoing a major transformation, has been investing heavily in fleet expansion, service improvements, and operational upgrades to regain its position in global aviation.

 

However, several challenges have weighed on its performance, including high aviation fuel prices, persistent global supply chain disruptions affecting aircraft delivery and maintenance, and operational inefficiencies. Additionally, longer flight routes caused by geopolitical airspace restrictions have further increased operating costs and reduced profitability.

 

Discussions are now underway between Tata Group and Singapore Airlines regarding a potential capital infusion to strengthen Air India’s financial position. While talks are ongoing, the final size and structure of the funding package have not yet been decided, as both investors assess long-term recovery prospects and financial exposure.