Air India's Provisional Q1 Loss May Cross ₹1,200 Cr, SIA Stake Shows ₹311 Cr Hit

Singapore Airlines (SIA) posted a net loss of ₹311.78 crore (S$42 million) from its 25.1% stake in Air India for the quarter ended June, the airline said Tuesday while announcing its results.

Based on these numbers, Air India's provisional loss for the first quarter of the current financial year has crossed ₹1,200 crore, according to Economic Times. The final figure may see minor variation.

Sharply higher fuel costs and the continued closure of Pakistani airspace have kept Air India's operations under pressure. IndiGo, Air India's largest rival, reported a loss of ₹382 crore for the same period.

SIA said it and Tata Sons remain committed to Air India's long-term success and are working together to support its multi-year transformation programme. SIA holds its 25.1% stake in Air India as part of the 2022 merger between Vistara and Air India.

Aggressive Expansion Plans

The losses come as Air India pursues an aggressive network and fleet expansion. The airline placed combined orders for 770 aircraft with Airbus and Boeing across 2023 and 2024. Air India has been counting on scale to bring down unit costs and turn profitable, but external challenges have slowed this plan. The airline has been adding new domestic and international routes as part of this expansion, alongside the induction of new aircraft.

Tata Sons chairman N Chandrasekaran said in the group's FY26 annual report that Air India's turnaround could take up to a decade. "Given where it began, Air India's transformation must be seen as a five to ten year journey," he wrote. He cited delays in aircraft components, ageing technology systems and the need for a stronger technical workforce as key challenges facing the airline.

Aviation turbine fuel, which makes up nearly 40% of an airline's operating cost in India, has become more expensive due to the US-Iran war. This has affected all Indian carriers, but Air India has been hit harder as it operates a large number of wide-body aircraft on long-haul international routes, where fuel consumption is higher than on domestic, narrow-body flights.

FY26 Losses Double

Air India, which merged operations with Vistara and integrated low-cost arm Air India Express, reported a net loss of over ₹22,238 crore for FY26. This is more than double the ₹10,859 crore loss recorded in FY25. Tata Group had taken over Air India from the government in January 2022.

Chandrasekaran attributed part of the widened losses to external disruptions during the year. "This year, Air India faced three external headwinds: air space closures; West Asia conflict driven fuel price hikes and foreign exchange fluctuations; and the crash of AI171 made it the most challenging year for Air India. At every stage, Air India's teams responded with resilience and adaptability," he said.

The difficult year also led to the resignation of chief executive Campbell Wilson. Following this, Chandrasekaran began personally overseeing weekly reviews of flight operations, commercial strategy and financial planning at the airline. Air India has not yet named a permanent replacement for Wilson.