The Tata Group-led Air India’s losses have weighed on the net profit of its other major stakeholder, the Singapore Airlines Group, which holds a 25.1 per cent stake in the airline.
Accordingly, Singapore Airlines Group’s net profit declined 57 per cent to SGD 1.184 billion in FY2025-26 from SGD 2.778 billion in the previous fiscal.
In its annual report, the Singapore Airlines Group reported that Air India posted a loss of SGD 3.56 billion, equivalent to over ₹26,000 crore, in FY2025-26.
Operating Conditions
The group’s auditors also flagged the Air India investment as an area of financial risk due to difficult operating conditions and geopolitical uncertainty. However, SIA did not write down the value of its investment after the review.
In a statement, the SIA Group on Thursday stated that the decline in its net profit was primarily due to the absence of the SGD 1.098 billion non-cash accounting gain recognised in November 2024 following the completion of the Air India-Vistara merger.
Besides, the SIA Group stated that the swing from a share of profits of associated companies in the previous year to losses in FY2025-26 was due to the group accounting for its share of Air India’s full-year losses, compared with only four months in FY2024-25.
As per the SIA Group, this resulted in a negative earnings impact of SGD 846 million during the year.
Core Component
On the other hand, the SIA Group reiterated its commitment to the Air India investment, describing it as a “core component” of its long-term multi-hub strategy.
The group stated that the investment provides it with exposure to one of the world’s largest and fastest-growing aviation markets while complementing its Singapore hub operations.
Furthermore, SIA said it is working closely with Tata Sons to support Air India’s multi-year transformation programme.
“Air India faces headwinds such as industry-wide supply chain constraints, air space restrictions, constraints on operations to its key Middle East markets, and elevated jet fuel prices,” the SIA Group said.
Amid growing financial pressure on Air India, senior executives from Singapore Airlines recently travelled to India for discussions with Tata Sons on the airline’s ongoing operational and financial situation.
FY26 Performance
Last week, Air India’s board reviewed the carrier’s FY26 performance, which was impacted by an estimated loss of over ₹26,000 crore.
A day later, Air India management, during an internal interaction with employees, indicated that no workforce reduction is currently being planned despite a difficult business environment.
However, the airline has deferred annual salary hikes for at least one quarter. At the meeting, Air India Chief Executive Officer and Managing Director Campbell Wilson is said to have told employees that several external developments continue to exert pressure on airline operations and profitability.
In addition, Wilson urged employees to prioritise tighter cost management measures, including curbing discretionary expenditure, reviewing vendor costs and postponing non-essential spending.
Flight Suspension
Separately, Air India has temporarily suspended flights on multiple international routes and reduced frequencies across several overseas operations between June and August 2026.
The airline said the adjustments were aimed at improving network stability and minimising last-minute inconvenience to passengers during the peak travel season.
Additionally, Air India has reduced frequencies on several North American, European, Australian and Southeast Asian routes as part of its revised international schedule.
Published on May 14, 2026