A day after Singapore Airlines disclosed that mounting losses at Air India had dragged down its annual profit by 57%, chief executive Goh Choon Phong blamed geopolitical disruptions, Pakistani airspace restrictions, and currency volatility for the Indian carrier's deteriorating financial performance, while reiterating commitment to the airline's long-term turnaround.
Speaking at a post-earnings investors' call Friday, Goh said Air India had been hit by a combination of external shocks that sharply inflated costs and disrupted international operations, particularly on routes to North America.
Air India's losses more than doubled to ₹25,606 crore in FY26, according to results released by Singapore IA, which owns 25.1% of the Tata Group-backed carrier. Singapore Airlines said its net profit fell to S$1.18 billion for the year ended March 31, from S$2.78 billion a year earlier, after booking a S$945.2 million share of losses from Air India. Last year's earnings had been boosted by a one-time S$1.1 billion accounting gain tied to the Air India-Vistara merger.
The losses reflect the first full year of exposure to Air India's financial performance following the merger of Vistara with Air India in November 2024.
"The closure of Pakistani airspace affects only Indian-based operations, not anyone else," Goh said, referring to restrictions that forced Air India to operate longer, fuel-intensive detours on key long-haul routes while foreign rivals continued using shorter flight paths.
16/05/2026 Economic Times
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