NEW DELHI, India — Air India is seeking additional funding from its shareholders, including Tata Group and Singapore Airlines, after reporting a wider-than-expected annual loss of more than Rs 22,000 crore ($2.4 billion) for the financial year ended March 31, according to a report.
The loss significantly exceeded earlier internal estimates and reflects a series of operational and geopolitical challenges that weighed on the airline’s performance.
According to a Bloomberg report, the airline is in discussions with its key shareholders regarding a potential cash infusion. While the size of the funding has not been finalized, it may fall short of the carrier’s overall capital requirements.
The financial strain comes at a critical time for Air India, which has been undergoing a major transformation under the Tata Group since its acquisition.
The situation has been further complicated by leadership uncertainty, with CEO Campbell Wilson recently announcing plans to step down later this year.
A range of external factors contributed to the mounting losses. These included the closure of Pakistani airspace for Indian carriers, forcing Air India to take longer and more expensive routes to Europe and the United States.
The airline also faced operational disruptions following a fatal Boeing 787 Dreamliner crash in June that killed more than 240 people, leading to a reduction in both international and domestic services.
Global geopolitical tensions, particularly in the Middle East, further disrupted routes in a region that accounts for about 16% of the airline’s total capacity.
Flights to Europe and North America were also affected, increasing operational costs at a time of rising jet fuel prices.
Air India’s financial performance has also impacted Singapore Airlines, which holds a 25.1% stake in the carrier following the 2024 merger of Vistara with Air India, with its earnings reportedly affected by the airline’s worsening financial position. (Source: IANS)
