Singapore Airlines Profits Hit by Air India Losses

• Singapore Airlines (SIA) maintains its 25.1% stake in Air India despite heavy financial drag.
• First-half net profit fell 44% to S$134 million on record revenue of S$11.3 billion.
• SIA's share of Air India losses reached S$361.7 million, nearly 2.7 times group net profit.
• Tata Sons and SIA are preparing INR 100 billion in fresh capital tied to milestones.

Singapore Airlines (SIA) is pressing ahead with its 25.1% stake in Air India, even as the investment continues to weigh heavily on the group's financial performance. Until Air India manages to resolve its underlying cost structures, the profitable core airline operations are left footing the bill for the ongoing restructuring efforts.

For the six-month period ending September 30, SIA announced a net profit of S$134 million, equivalent to $104 million, representing a 44% decline compared to the previous year. This came despite the group generating record revenue of S$11.3 billion, or $8.8 billion. SIA's share of losses stemming from Air India hit S$361.7 million, roughly $281.5 million, which amounted to nearly 2.7 times the total net profit of the group.

Despite the steep figures, the losses marked an improvement from the S$429.5 million, or $334 million, loss recorded during the same timeframe a year earlier. This positive shift occurred entirely during the second quarter, helping reduce associate losses by S$110 million for the three months leading up to September. Consequently, the carrying value of SIA's investment in Air India decreased to S$800 million from S$1.135 million registered in March.

Stock photo for illustration only, not from the actual event

Meanwhile, SIA's core airline operations remained robust, posting a first-half operating profit of S$569 million, or $443 million, despite a 56% surge in net fuel costs following hedging activities. The broader Air India Group reported a combined loss of approximately $2.3 billion for fiscal 2026, more than doubling its losses from the previous year due to airspace closures, aircraft delivery delays, and higher operating expenses.

To support the turnaround, Tata Sons and SIA are preparing to inject INR 100 billion, or $1.1 billion, in fresh capital installments tied directly to operational performance milestones, with SIA's portion estimated at $276 million. Management has not provided a specific timeline for when Air India will return to profitability, emphasizing that a transformation of this scale requires time.

Source: Skift