Singapore Airlines has said it remains committed to supporting Air India despite the Indian carrier significantly impacting its earnings over the past year. The losses come after the merger of Vistara with Air India in December 2024, which gave Singapore Airlines a 25.1% stake in India’s flag carrier.
For the financial year ending March 2026, Singapore Airlines reported record revenue and strong operating profits. However, net profit dropped sharply by over 57%, mainly due to Air India’s financial losses. Air India recorded losses of approximately SG$3.56 billion, with Singapore Airlines’ share of those losses amounting to around SG$945 million.
Air India has faced multiple operational and geopolitical challenges over the past year. These include Pakistan airspace restrictions, disruptions caused by tensions in West Asia, rising aviation fuel costs, and reductions in international services. The airline has also been forced to temporarily cancel and reduce several flights during the peak June-August travel season to stabilise operations.
Despite these setbacks, Singapore Airlines CEO Goh Choon Phong described the investment as a “long game” and said Air India has shown measurable progress in areas like staff training, customer experience and operational transformation. Analysts believe the partnership is strategically important because India remains one of the world’s fastest-growing aviation markets.
Singapore Airlines first entered the Indian market through its joint venture with Tata Sons to launch Vistara in 2015. After the merger into Air India, Singapore Airlines invested additional capital and may need to contribute more funding in the future as Air India continues its turnaround efforts.
Industry experts say that although the short-term financial pressure is high, the long-term opportunity in India’s aviation sector remains attractive. India’s rapidly growing middle class, expanding international travel demand and increasing airport infrastructure investments continue to make the market strategically valuable for global airlines.