Singapore Airlines to carefully consider fund infusion in loss-making Air India

Delhi/Mumbai: Singapore Airlines (SIA), which owns a quarter of Air India, said it would “carefully consider any requests for additional capital” from the Tata Group airline, marking its first public indication of a willingness to infuse fresh funds into the loss-making carrier.

The Singapore flag carrier also reaffirmed its long-term commitment to its 25.1% stake in Air India.

"The Board will carefully consider any requests for additional capital from Air India, taking into consideration the Group's other capital requirements and Air India's business strategy," SIA said in a regulatory filing on Monday.

In the filing, the airline responded to queries from the Securities Investors Association (Singapore), or SIAS, a registered charity and one of Asia’s largest investor lobby groups, as well as questions from shareholders ahead of its annual general meeting on 24 July.

Investors, including SIAS, have questioned the rationale behind Singapore Airlines' investment in Air India, in view of mounting losses at the Indian carrier.

Explaining its investment rationale, SIA said its stake in Air India provides direct access to the country's domestic aviation market and international traffic flows through Indian hubs, complementing its Singapore hub.

"The SIA Group is also the only non-Indian airline group with a direct stake in this important and fast-growing market," it said.

SIA said its capital allocation follows "a disciplined evaluation process" that considers operating cash flow, investment requirements in new aircraft and products, as well as strategic investments such as Air India.

Air India and Singapore Airlines had yet to respond to queries from Mint.

"Singapore Airlines' language suggests a more measured approach to future capital commitments. Rather than signalling automatic support, it is indicating that any fresh funding request from Air India will be evaluated against the group's broader capital needs and Air India's business strategy. That is a reasonable stance for a shareholder seeking greater accountability on returns,” said Gagan Dixit, senior vice-president, oil & gas and aviation at brokerage firm Elara Securities.

The comments come after Singapore Airlines' FY26 net profit more than halved, largely due to its share of losses from Air India. The airline recognised a share of losses of 945.2 million Singapore dollars (about US$742.4 million) from its investment in Air India.

According to SIA's annual report filed in May, Air India is expected to report a loss of about $3.76 billion Singapore dollar (around US$3 billion or ₹28,400 crore) for FY26, nearly three times its estimated FY25 loss. Privately-held Air India is expected to file its earnings with the ministry of corporate affairs next month.

"This should not be interpreted as a sign that Singapore Airlines is pulling back. It is more a reflection of prudent capital allocation. Investors naturally want to see operational improvements, a clearer path to profitability and evidence that previous investments are delivering results before approving fresh capital,” Dixit said.

FY26 losses at Air India, the country’s second-largest carrier with a 25% market share, are expected to be more than 10 times those of market leader IndiGo, operated by InterGlobe Aviation, which reported a net loss of ₹2,400 crore.

The airline is also preparing for a leadership transition, with chief executive Campbell Wilson set to step down in September. The airline is still looking for his replacement. Air India has brought back former chairman and managing director Pradeep Singh Kharola to its senior management team, signalling the start of a planned leadership transition as Wilson departs.