Air India's losses decrease by ₹2,000 crore

The total loss of Tata Group-owned airline Air India has decreased to approximately ₹10,837 crore compared to last year, which was previously ₹12,850 crore, according to a report by The Hindu. Singapore Airlines holds a 25.1% stake in Air India, based on which these figures have been estimated.

According to a report by Singapore Airlines, Singapore Airlines' share of losses in Air India has decreased in the first six months of the financial year 2026-27. Singapore Airlines' loss stood at S$361.7 million (approximately ₹2,720 crore), compared to S$429.5 million (₹3,229 crore) during the same period last year. Thus, a decrease of S$67.8 million (approximately ₹510 crore) has been recorded in Singapore Airlines' loss.

This reduction in loss is a relief for Air India's financial partners. However, Singapore Airlines stated that due to a large increase in jet fuel costs, its own net profit for the first six months decreased by 43.9% and stood at S$134 million (approximately ₹1,008 crore).

The severity of Air India's financial crisis was evident in previous years. In the financial year 2025-26, Air India and its subsidiary Air India Express together recorded a total net loss of ₹22,238 crore, which was more than double the loss of ₹10,859 crore in the previous financial year.

Singapore Airlines stated in a press statement that they and Tata Sons acknowledge that such large-scale transformation will take time. Both partners are working closely to lead Air India towards profitable growth, which includes increasing infrastructural cost efficiency, enhancing coordination between Air India and Air India Express, and refining business strategies amidst current external challenges.

Air India's new Chief Executive Officer (CEO) and Managing Director Tevollde Gabremarium, who took charge on 1 October, is focusing on reducing costs and increasing operational efficiency. Speaking at the Aviation India and South Asia Summit on 3 November, Gabremarium stated that the airline is examining unit costs in every aspect of its business. A multi-functional operational cost-saving team has also been formed to examine costs and identify saving opportunities.

In an internal message sent to employees in October, the CEO called for a culture of frugality, accountability, and thoughtful decision-making. Air India is attempting to deepen operational coordination between Air India and Air India Express through the integration of certain corporate functions to improve its cost structure and financial performance.

Air India is a major Indian airline operating under the ownership of the Tata Group. It is one of the country's largest airline companies and has recently been known for the transformation of its structural and business model.