SIA’s dividend capacity will be curtailed if it injects more than expected fund into Air India, says analyst

[SINGAPORE] Should Singapore Airlines (SIA) inject capital that is more than expected into its associate company Air India, the move could begin to constrain its dividend capacity, DBS Group Research said in a report published on Wednesday (Apr 15).

The Indian airline had racked up a wider-than-expected annual loss of more than 220 billion rupees (S$3 billion) for FY2026, prompting the company to seek funds from its shareholders, Bloomberg reported.

Air India’s controlling shareholder, Tata Group, as well as SIA – which owns 25.1 per cent of the carrier – are reportedly in talks to provide funding.