Air India to Convert Passenger Jets Into Freighters, Singapore Airlines Says
Air India plans to turn some passenger jets into dedicated cargo freighters, one of several revenue strategies from new chief executive Tewolde Gebremariam, Singapore Airlines said on November 12. The carrier lost over ₹22,000 crore in FY26, and its 25.1% owner faces investor pressure.
Air India plans to convert passenger aircraft into dedicated freighters to grow its cargo business, Singapore Airlines said in an investor presentation on Thursday, November 12. The strategy comes from Air India's new Chief Executive Officer, Tewolde Gebremariam.
Singapore Airlines owns 25.1% of Air India and books its share of the Indian carrier's profit or loss in its own accounts. That makes Air India's finances a direct concern for Singapore investors.
Cargo and overseas sales
Air India's cargo arm has gained in recent months from better use of capacity and higher yields, the presentation said. One-stop operations, forced by airspace closures, also let the airline carry heavier cargo loads to the US and Canada.
The airline is also targeting more sales in overseas markets. That is meant to soften the hit from the rupee's fall against other currencies.
Hubs and partnerships
Air India will rebalance services between Mumbai and Delhi. It will build a third hub in Bengaluru to offset the closure of Pakistan's airspace, according to Singapore Airlines.
The two airlines are deepening their commercial ties. In October they introduced common fares on various routes. "Average daily bookings on flights operated by both carriers have increased," Singapore Airlines said.
Air India has also set up a full-time cost savings team to review spending systematically.
Losses and investor pressure
Air India posted a net loss of over ₹22,000 crore in FY26, blamed on rupee depreciation and higher fuel burn from airspace closures. The loss prompted a debate in Singapore's Parliament, and Singapore Airlines has faced pressure from investors over its decision to back the Indian airline.
In the first half of FY27, Singapore Airlines' net profit fell 44% year on year. A lower share of Air India's loss and lower taxes helped cushion the decline.
On a conference call after the results, Singapore Airlines management said the smaller share of Air India's loss in its statements came from the reversal of certain provisions made in earlier years.
In its results statement on Wednesday, the airline said Air India had made "tangible progress" in a multi-year transformation. It cited better customer experience and operations, a rising Net Promoter Score, a customer-satisfaction measure, and external performance awards.
Singapore Airlines and Tata Sons, the other partner, recognize that a transformation of this scale "will take time", the statement said. Both partners are working on structural cost efficiencies and closer links between Air India and Air India Express.
