Air India has reported a financial setback of approximately $2.8 billion for the 2025–26 fiscal year, marking its heaviest yearly loss since returning to the Tata Group fold in 2022. The numbers were disclosed in the annual financial filing of Singapore Airlines on Thursday.

The losses, listed as 3.56 billion Singapore dollars in the report, translate to roughly $2.8 billion at prevailing exchange rates. The development underscores the scale of challenges the airline continues to face during its ongoing restructuring phase.

Singapore Airlines Reaffirms Backing

Singapore Airlines, which holds a 25.1% shareholding in the Air India Group, reiterated its long-term commitment to the investment. The carrier described India as one of the world’s most dynamic and rapidly expanding aviation markets, stating that its stake aligns strategically with its broader growth plans anchored around its Singapore hub.

The airline noted that it is collaborating closely with Tata Sons to support Air India’s multi-year transformation roadmap.

Operational Headwinds Persist

According to the report, Air India’s performance has been weighed down by persistent industry-wide supply chain bottlenecks, restricted airspace access, curbs on flights to certain Middle Eastern destinations, and elevated aviation turbine fuel prices.

Despite these pressures, the airline has continued efforts to modernise its fleet, refurbish cabin interiors, enhance passenger experience, and strengthen operational reliability as part of its revival strategy.

Impact on Singapore Airlines’ Earnings

Singapore Airlines also reported a sharp decline in its own net profit for the year. The drop was attributed largely to the absence of a one-time accounting gain recorded in the previous financial year following the merger between Vistara and Air India. Additionally, the shift from recording partial-year profits earlier to accounting for a full year of Air India’s losses significantly impacted its bottom line.

International Services Scaled Back

Separately, Air India has confirmed temporary adjustments to several overseas routes, including reductions and suspensions extending until August 2026. The airline cited extended airspace constraints and record-high fuel expenses as factors affecting the commercial sustainability of certain routes.

The move, according to the carrier, is intended to stabilise operations and minimise last-minute disruptions for travellers while the airline continues its restructuring and fleet renewal programme.