Correction, 12 November 2026: The rupee estimates have been made consistent with the indicative ₹73 per Singapore dollar conversion used in The New Indian Express report: approximately ₹10,500 crore versus ₹12,500 crore. These are rounded estimates derived from SIA’s 25.1% stake and reported loss shares, not separately published Air India results. Different exchange rates produce different rupee estimates.
Air India is estimated to have incurred a consolidated net loss of approximately ₹10,500 crore during the first half of financial year 2026-27, highlighting the financial challenges facing the Tata Group-owned airline as it continues its multi-year transformation. The estimate is based on disclosures by Singapore Airlines (SIA), which owns a 25.1% stake in Air India and accounts for its share of the Indian carrier’s losses in its financial statements.
Despite the substantial loss, the figure represents an improvement from the estimated ₹12,500 crore loss recorded during the corresponding period last year. Singapore Airlines reported that its share of Air India’s losses declined by 16% to S$361.7 million, or approximately ₹2,640 crore, for the six months ended September 30, 2026. The reduction suggests some progress in Air India’s cost-control efforts, although the airline remains far from achieving sustainable profitability.
Air India’s H1 FY27 Loss Estimated at ₹10,500 Crore
The estimated loss of ₹10,500 crore represents a decline of approximately ₹2,000 crore compared with the estimated ₹12,500 crore loss in H1 FY26.
The figures were derived from Singapore Airlines’ November 11 financial disclosures. Since SIA holds a 25.1% stake in Air India, its share of the airline’s losses provides an indication of the Indian carrier’s overall financial performance.
| Financial indicator | H1 FY26 | H1 FY27 |
|---|---|---|
| Estimated Air India group loss | ₹12,500 crore | ₹10,500 crore |
| Singapore Airlines’ share of losses | S$429.5 million | S$361.7 million |
| Estimated reduction in losses | — | ₹2,000 crore |
| Year-on-year change | — | Down approximately 16% |
The figures indicate that Air India’s losses have narrowed, but the airline continues to face substantial financial pressure.
It is important to note that ₹10,500 crore is an estimate derived from SIA’s shareholding and reported share of losses, rather than a separately published standalone H1 result from Air India.
Singapore Airlines’ Share of Air India Losses Declines
Singapore Airlines reported that its share of losses from Air India declined to S$361.7 million in H1 FY27, compared with S$429.5 million in the same period a year earlier.
The reduction of S$67.8 million represents an improvement of approximately 16%.
At an indicative exchange rate of ₹73 per Singapore dollar, SIA’s share of the losses works out to around ₹2,640 crore.
The decline is relevant for Singapore Airlines because its investment in Air India has become a significant factor in its financial performance.
The carrying value of SIA’s investment in Air India fell to S$799.9 million as of September 30, 2026, from S$1.13 billion at the end of March 2026.
This reflects the financial impact of Air India’s continued losses and the accounting treatment of SIA’s investment.
Why Is Air India Still Reporting Heavy Losses?
Air India’s financial challenges reflect a combination of structural operating costs, fleet-related expenses, intense airline competition and external disruptions.
The airline is undergoing a major transformation following its return to the Tata Group in January 2022. The programme involves fleet modernisation, network expansion, customer-service improvements, technology upgrades and organisational restructuring.
These investments require substantial capital and can take years to translate into sustainable operating profits.
Some of the key challenges include:
1. High operating costs
Airlines face significant expenses related to aviation fuel, aircraft maintenance, airport charges, employee costs and leasing.
Air India must also manage the costs associated with modernising its fleet and improving operational reliability.
2. International competition
Air India competes with established international airlines on major long-haul routes.
Building a competitive global network requires investment in aircraft, airport infrastructure, partnerships and customer experience.
3. Geopolitical disruptions
Restrictions on certain international airspace can increase flight distances, fuel consumption and operating expenses.
Changes in international routes can also affect aircraft utilisation and scheduling.
4. Fleet and transformation expenses
The airline is investing in new aircraft, cabin upgrades and improvements to its operational systems.
While these initiatives are intended to strengthen its competitive position, the benefits may take time to emerge.
Air India Reported a ₹22,238 Crore Loss in FY26
The H1 FY27 estimate follows a difficult financial year for the airline group.
Air India and Air India Express reported a consolidated net loss of ₹22,238 crore in FY26, more than double the ₹10,859 crore loss recorded in FY25.
The group’s revenue also declined during the period.
| Financial indicator | FY25 | FY26 |
|---|---|---|
| Revenue | ₹76,754 crore | ₹70,086 crore |
| Consolidated net loss | ₹10,859 crore | ₹22,238 crore |
| Operating cash flow | ₹5,447 crore | -₹1,790 crore |
The negative operating cash flow in FY26 was another concern. It indicated that the airline group was consuming cash through its operating activities rather than generating positive operating cash flow.
This increases the importance of cost controls, revenue growth and financial support from shareholders as the transformation continues.
New CEO Tewolde Gebremariam Focuses on Cost Reduction
Air India’s new CEO and Managing Director, Tewolde Gebremariam, took charge on October 1, 2026.
Improving financial performance and achieving sustainable profitability are among the major priorities under his leadership.
The airline has established a dedicated cross-functional cost-saving team to examine expenditure and identify opportunities to improve efficiency.
It is also working with Tata Sons and Singapore Airlines to strengthen operational coordination and reduce duplication across Air India and Air India Express.
Some of the measures being pursued include:
- Reviewing expenditure across different business functions.
- Integrating selected corporate services and resources.
- Improving aircraft utilisation and operational efficiency.
- Strengthening revenue generation across domestic and international markets.
- Aligning fleet expansion with sustainable growth.
- Improving coordination between Air India and Air India Express.
The airline has also introduced an internal initiative called PRABHAV – The Value Creator Award, intended to encourage employees to suggest ways to reduce costs, improve productivity and generate additional revenue.
Air India Plans to Improve Revenue and Network Efficiency
Alongside cost reduction, Air India is working to strengthen its commercial strategy.
One area of focus is the restructuring of its route network to respond to operational constraints and changing passenger demand.
The airline is rebalancing services between Mumbai and Delhi and developing Bengaluru as an additional hub.
This strategy is intended to improve connectivity and reduce the impact of restrictions on certain international flight routes.
Air India is also seeking to diversify its passenger traffic by increasing sales from international markets.
Another area of opportunity is cargo transportation. The airline is exploring ways to expand its cargo business, including plans to convert passenger aircraft into dedicated freighters.
A stronger cargo operation could help diversify revenue beyond passenger ticket sales.
The company is also working to improve customer experience, strengthen international partnerships and increase operational reliability.
Singapore Airlines Faces Its Own Profit Pressure
Air India’s losses have also affected Singapore Airlines’ financial performance.
SIA reported a net profit of S$134 million for the first half of FY27, down 43.9% from S$239 million in the corresponding period last year.
The airline group’s revenue reached approximately S$11.3 billion, while total expenditure increased to S$10.73 billion.
One major pressure came from aviation fuel costs.
Singapore Airlines reported that average jet fuel prices increased 86.7% year-on-year to approximately US$171 per barrel.
Higher fuel expenses affected the group’s operating profitability, although the reduction in losses from Air India provided some relief.
Despite the financial pressure, SIA has described its investment in Air India as an important part of its multi-hub strategy.
The company and Tata Group have indicated that they will continue working together to support Air India’s transformation.
What Does the Loss Mean for Air India’s Future?
The narrowing of Air India’s estimated losses is a positive financial development, but the airline still faces a long road towards profitability.
Its ability to reduce operating expenses while expanding revenue will determine how quickly the financial position improves.
The airline also needs to ensure that its fleet expansion and network growth generate sufficient returns.
For Tata Group and Singapore Airlines, the priority will be to support the transformation while maintaining financial discipline and improving operational performance.
The scale of the investment and the complexity of rebuilding a major international airline mean that profitability may take several years to achieve.
The Bigger Picture
Air India’s estimated ₹10,500 crore loss in H1 FY27 highlights the financial scale of the challenge involved in rebuilding one of India’s largest airline groups. Although losses have narrowed by approximately ₹2,000 crore year-on-year, the airline continues to face high operating expenses, international competition, fuel-price volatility and the costs of modernising its fleet. Its FY26 performance, including negative operating cash flow, shows why financial discipline has become a central priority.
For Tata Group and Singapore Airlines, the transformation is a long-term investment rather than a short-term turnaround. The airline must improve its cost structure, strengthen international connectivity, increase cargo revenue and deliver a better customer experience while managing its expansion carefully. Whether these measures translate into sustainable profitability will be one of the most important developments to watch in India’s aviation industry.
Looking Ahead
Air India’s new management will focus on identifying cost savings, improving revenue generation and strengthening operational coordination across the airline group. The impact of these measures should become clearer in subsequent financial disclosures. Investors will particularly watch whether the reduction in H1 losses continues and whether the airline can improve its operating cash flow.
The coming years will be important for Air India’s transformation as it competes with established international carriers and expands its global network. The decline in estimated H1 losses offers some indication of progress, but the airline still needs to demonstrate that its cost-reduction initiatives can deliver lasting improvements. Its ability to balance investment, operational efficiency and financial performance will determine the long-term outcome.
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