Air India is estimated to have incurred losses of around Rs 10,500 crore in the first half of financial year 2027 (H1FY27), as per financial disclosures made by Singapore Airlines (SIA), which owns a 25.1% stake in the Indian carrier. SIA group on Wednesday said that the share of Air India’s losses in the first half has fallen 16% to S$361.7 million (Rs 2,640 crore) from S$429.5 million (Rs 3,140 crore) a year earlier.
Based on the exchange rate (1 S$ = Rs 73) and Tata group’s remaining stake, Air India’s first-half losses stood at about Rs 10,500 crore, a decline from about Rs 12,500 crore in the same period last year. Air India group had reported a Rs 22,000 crore loss in financial year 2026.
Singapore Airlines, the global aviation major, reported a net profit of S$134 million for the six months ended Wednesday, down from S$239 million in the same period a year earlier. The airline’s total costs increased by more than 20% to S$10.73 billion with average jet fuel prices rising 86.7% year-on-year to US$171 per barrel.
SIA said that Air India has made tangible progress in its multi-year transformation. It added that the decline in H1 profit was largely attributable to the decline in operating profit and "partially offset by the lower share of losses from associated companies, mainly Air India (+ SGD 68 million), and lower tax expenses (+ SGD 70 million)".
SIA also said that it sees the shareholding in Air India as a key pillar of its multi-hub strategy. It added that both partners (SIA and Tata Group) continue to work closely to support Air India's journey towards profitable growth, including strengthening structural cost efficiencies, unlocking greater synergies between Air India and Air India Express, sharpening its commercial strategy to navigate current external challenges and elevating its customer proposition.
Air India’s newly appointed Chief Executive Officer and Managing Director Tewolde Gebremariam in September had said that achieving sustainable profitability remains a key objective for the airline as it progresses through its transformation journey.
He stated that a combination of external factors has affected the airline's path to breakeven, but stressed that Air India cannot afford to lose focus on financial performance. He also stressed that cost discipline must become part of the airline's culture.
