NEW DELHI — Air India posted a loss of $2.8 billion for fiscal 2025-26, weighing on the earnings of Singapore Airlines Group, which owns a 25.1% stake in the Indian carrier, according to Singapore Airlines’ annual report released Thursday.
Singapore Airlines Group reported net profit of 1.18 billion Singapore dollars for the year ended March 2026, down 57.4% from SGD 2.78 billion a year earlier. The decline reflected the impact of Air India’s losses as well as the absence of a large one-time accounting gain recorded in the prior year.
The Singapore Airlines report said Air India recorded losses of SGD 3.56 billion, equivalent to about $2.8 billion at current exchange rates, for the 12 months ended March 31.
Singapore Airlines said it remains committed to its investment in Air India, describing the stake as a core part of its long-term multi-hub strategy.
“This strategic investment provides the Group with a direct stake in one of the world’s largest and fastest-growing aviation markets, complementing its Singapore hub and strengthening its long-term growth,” the airline said in a statement.
Singapore Airlines said its net profit fell by SGD 1.59 billion from the previous year, partly because fiscal 2024-25 included a SGD 1.10 billion non-cash accounting gain tied to the completion of the Air India-Vistara merger in November 2024.
“The swing from a share of profits of associated companies last year to a loss this year (SGD 846 million) was due to the Group accounting for its share of Air India’s full year losses, versus only four months the previous year,” the company said.
Air India has faced operational and financial pressures during its turnaround effort. The airline has canceled several international flights in recent months because of Pakistan’s airspace closure and disruptions linked to conflict in the Middle East.
Those challenges have also affected broader air traffic trends in India. Civil Aviation Ministry data showed passenger traffic slowed in April compared with March across both domestic and international routes.
Domestic air traffic totaled 140.8 lakh passengers in April, down 4% from both the prior month and the same month a year earlier. International traffic fell more sharply, dropping 20% from March to 28.3 lakh passengers.
Higher jet fuel prices have added further pressure by increasing operating costs, creating another hurdle for Air India’s turnaround plan. (Source: IANS)
