Air India Group has posted a staggering loss of more than $2.8 billion for its 2025-26 fiscal year, the worst in the carrier's history. The figure, disclosed by shareholder Singapore Airlines in its annual report, highlights the severe impact of geopolitical disruptions on India's second-largest airline.
The loss-$3.56 billion in Singapore dollars-comes as Air India was forced to cut scores of international flights following the Iran war and a Pakistani ban on Indian carriers from its airspace. That has severely hampered the Tata Group-owned airline's turnaround efforts.
Singapore Airlines, which holds a 25 percent stake, acknowledged the challenges. Its auditor, KPMG, flagged "indicators of impairment" for the Air India investment, citing operating conditions and heightened geopolitical uncertainty.
Air India has not yet filed its earnings with local regulators and declined to comment. The loss is a major setback after the carrier posted a standalone loss of $415 million in 2024-25.
Surging fuel costs due to the Iran war are expected to weigh more heavily in the year ahead, SIA warned. Meanwhile, foreign carriers like Lufthansa and Cathay Pacific are stepping in to add services to India, one of the world's fastest-growing aviation markets.