Air India recorded a record loss of more than $2 billion for its 2025-26 fiscal year, according to shareholder Singapore Airlines' annual report, as India's second-largest airline grappled with disruption from the Iran war and Pakistan's ban on Indian carriers from its airspace.
In its report, released on Thursday, Singapore Airlines, which owns a 25% stake in Air India, said the Indian group's losses amounted to 3.56 billion Singapore dollars, or $2.80 billion at current exchange rates, for the 12 months to end-March.
Singapore Airlines did not indicate the exchange rate it had used to calculate the loss. Reuters previously reported that Air India was expected to post an annual loss of $2.12 billion.
Air India, which is not listed in India and has not yet filed its earnings with local regulators, declined to comment. Its 2024-25 loss stood at 39.75 billion Indian rupees ($415.09 million).
The loss will be another major setback for the airline, which has been forced to cut scores of international flights in recent months, hitting its turnaround plans.
Air India's flight cuts are a boon for foreign carriers, with Lufthansa Group and Cathay Pacific among those adding services to one of the world's fastest-growing aviation markets, Reuters reported on Thursday.
