Air India records record annual loss above $2 billion, shareholder results show

Air India Group recorded a record loss of more than $2 billion for its 2025-26 fiscal year, according to shareholder Singapore Airlines’ annual report, as India’s second-largest airline grappled with disruption from the Iran war and ​Pakistan’s ban on Indian carriers from its airspace.

In the report released on Thursday, Singapore Airlines (SIA), ​which owns a 25% stake in Air India, said the Indian group’s ⁠losses amounted to 3.56 billion Singapore dollars, or $2.80 billion at current exchange rates, for the 12 ​months to end-March.

Singapore Airlines did not indicate the exchange rate it had used to calculate the ​loss. Reuters previously reported that Air India was expected to post an annual loss of over $2.12 billion.

The loss will be another major setback for Airline, which has been forced to cut scores of international flights in recent ​months, hitting turnaround plans at the Tata Group-owned airline.

In a report included with SIA’s disclosures, its ​auditor KPMG said the company’s management saw “indicators of impairment” for the Air India investment, citing challenging operating conditions and ‌heightened ⁠geopolitical uncertainty.

Air India, which is not listed in India and has not yet filed its earnings with local regulators, declined to comment. Its 2024-25 standalone loss stood at $415 million, with consolidated losses when including budget operator Air India Express of $1.13 billion.

“Air India faces headwinds such as industry-wide supply ​chain constraints, airspace restrictions, ​constraints on operations to ⁠its key Middle East markets, and elevated jet fuel prices,” SIA said in a statement, adding that it was committed to its investment in ​the group.

Air India’s flight cuts are a boon for foreign carriers, with Lufthansa ​Group and ⁠Cathay Pacific among those adding services to one of the world’s fastest-growing aviation markets, Reuters reported on Thursday.

It has also been facing intense scrutiny since last year’s Dreamliner crash in Gujarat, India, which ⁠killed 260 ​people.

SIA warned that surging fuel costs due to the Iran ​war were still “filtering through” and would weigh more heavily in the year ahead, as it reported a smaller-than-expected 57.4% drop in ​annual profit.