Singapore Airlines has seen Air India drag on its earnings for about five quarters, but analysts and the airline say the investment will pay off in the long term.
SIA reported on Thursday a record revenue of 20.5 billion Singapore dollars ($16.06 billion) for its financial year ended March 31, as operating profit surged 39% to SG$2.38 billion on higher demand, higher yields and lower full year net fuel cost, SIA said.
However, net profit plunged 57.4% year-on-year to SG$1.18 billion— mainly owing to Air India’s losses and an accounting gain in the previous year.
Air India has been beset by numerous hindrances: Pakistan’s airspace closed in April 2025, then Flight 171 crashed in June, killing more than 250 people.
Now, the Iran war and the carrier’s connectivity exposure to the Middle East market are wreaking havoc, forcing the airline to cancel nearly a third of its flights during the peak June to August travel period.
“These changes are aimed at improving network stability and reducing last-minute inconvenience to passengers,” Air India said.
SIA’s venture into India’s rapidly growing aviation market is strategic, “and strategic usually means unprofitable,” said independent aviation analyst Brendan Sobie. “But obviously the last year has been worse than anyone would have imagined.”
Air India recorded a loss of SG$3.56 billion, or $2.8 billion, far exceeding the $2.4 billion expected loss reported by Bloomberg in April. SIA’s share of the loss amounted to SG$945.2 million.
Air India has weighed on the bottom line since SIA began accounting for the Indian carrier in late 2024.
When asked if SIA will inject any additional capital into Air India, Goh declined to comment, saying that this “will be a discussion that we will have to have with our fellow shareholders.”
15/05/2026 Monica Pitrelli/Lim Hui Jie/CNBC
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