Singapore Airlines said its net profit fell to S$1.18 billion (₹8,864 crore) 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. The FY25 earnings were boosted by a one-time S$1.1 billion accounting gain tied to the Air India-Vistara merger.
Air India’s total fiscal loss stands at S$3,765.7 million, calculated at an average FY26 exchange rate of ₹68.5.
Air India didn’t offer a comment.
People in the know said Air India’s financial losses are largely due to a ₹7,000-₹8,000 crore impact due to unfavourable currency movements and ₹1,000-₹1,500 crore for complying with the new labour codes. However, the bulk of the bleed stems from external shocks: fuel-heavy detours due to the Pakistani airspace closure and the severe financial aftermath of the Boeing plane loss following crash of Flight 171 last year has added another ₹4,000-5,000 crore.
Despite the earnings volatility, SIA said it remains “committed” to its 25.1% stake in the Indian carrier, describing it as a “core component” of its multi-hub strategy. The airline added that while Air India faces supply chain headwinds and airspace restrictions in the Middle East, its fleet renewal and transformation programme remains on track.
“As at 31 March 2026, the SIA Group’s carrying amount in AI amounted to $1,134.6 million,” showed the airline’s audit report, reviewed by ET. “During the year, the SIA Group’s share of losses from AI amounted to $945.2 million,” it said adding, “as at the reporting date, management has assessed that there were indicators of impairment for the SIA Group’s investment in AI, triggered by challenging operating conditions and heightened geopolitical uncertainty.”The sharp swing reflects a full 12 months of exposure for SIA to Air India’s losses, compared to just four in FY25.
Air India’s performance was hit by a perfect storm. A June 2025 crash in Ahmedabad and a US travel slowdown tanked demand, while Pakistani airspace bans and West Asia conflicts forced six-hour detours on North American flights, spiking fuel bills. This culminated Wednesday in a drastic 27% cut to international capacity.
SIA said it is working with Tata Sons to support Air India’s turnaround despite these supply chain and airspace bottlenecks. The carrier remains committed to its $1.13 billion stake, calling it a core vehicle to tap the world’s fastest-growing aviation market.
