Air India Seeks USD 1.5 Bn Fresh Funding from Tata, Singapore Airlines

Air India is seeking about USD 1.5 billion in fresh equity from its owners, Tata Sons and Singapore Airlines, as the carrier grapples with mounting losses and rising costs during its ongoing transformation, according to people familiar with the matter.

The airline and its budget arm, Air India Express, posted a combined loss of USD 2.33 billion in FY26, more than double the previous year’s figure. Geopolitical disruptions, airspace restrictions, and the fallout from last year’s crash have weighed on the turnaround.

The request would be one of the largest publicly reported shareholder funding asks since Tata Group took control of the former state-owned carrier in 2022.

The airline is seeking the funds as fresh equity, with the infusion likely to be made in tranches. Discussions are ongoing, and no final decision has been taken on the amount or timing.

Air India’s losses have also become a drag on Singapore Airlines’ financial performance, with the Singapore carrier reporting a USD 945.2 million loss from Air India for FY26. Despite the strain, Singapore Airlines has maintained its commitment to the transformation. SIA CEO Goh Choon Phong has called the turnaround a “long game,” stressing there is no shortcut to rebuilding the airline.

Tata Sons Chairman N Chandrasekaran has previously said Air India’s turnaround could take up to a decade, citing the need to overhaul its fleet, technology, systems, and organizational culture.

Air India is also reviewing its aircraft delivery schedule, with talks underway to defer some Airbus and Boeing deliveries as the group looks to contain costs.