Efficient small scale axial air turbines play a major role in determining the overall conversion efficiency in certain energy cycles using renewable energy sources. Loss predictions are vital for the development and optimization of such small scale turbines. Since all published loss prediction schemes were developed for large scale turbines, therefore there is a need for an effective approach to predict such losses for the small scale axial turbines. This work aims to develop a new approach to predict the losses in a small scale axial air turbine using both conventional loss models and computational fluid dynamics (CFD) simulations. Results showed that the Kacker & Okapuu model gave the closest values to the CFD simulation results thus it can be used to produce the initial turbine design that can be further optimised through CFD simulations.