Singapore Airlines Profit Plunges 57% as Air India Losses Mount

The Singapore Airlines (SIA) Group said its net profit declined 57.4 per cent year-on-year to 1.184 billion Singapore Dollars (USD 932 million), while operating profit rose 39 per cent to 2.375 billion Singapore Dollars (USD 1.87 billion). Revenue rose 5 per cent to a record 20.522 billion Singapore Dollar (USD 16.16 billion) during the financial year ended March 31, 2026, according to the airline's audited financial results release.

"The swing from a share of profits of associated companies last year to a loss this year (-$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 release said.

The airline also said the decline in net profit was partly due to the absence of the "$1,098 million non-cash accounting gain recognised in November 2024 upon the completion of the Air India-Vistara merger."

Despite the losses, Singapore Airlines reaffirmed its long-term commitment to Air India, in which it holds a 25.1 per cent stake.

"The Company is committed to its 25.1% investment in the Air India Group, which is a core component of its long-term multi-hub strategy," the release said.

The airline said the investment gives the group "a direct stake in one of the world's largest and fastest-growing aviation markets."

Singapore Airlines said it is working closely with partner Tata Sons to support Air India's transformation programme.

According to the release, Air India is facing "industry-wide supply chain constraints, air space restrictions, constraints on operations to its key Middle East markets, and elevated jet fuel prices."

However, the airline said Air India "continues to make progress in its fleet renewal and aircraft retrofit program, initiatives to elevate the end-to-end customer experience, and improve its operational performance."

Singapore Airlines also highlighted expanding cooperation with Air India.

"From 4 May 2026, SIA and Air India added one domestic and 20 international destinations to their codeshare arrangements," the release said.

This takes the total number of codeshare destinations between the two airlines to 82 destinations across 27 countries and territories.

The airline group said it carried a record 42.4 million passengers during FY2025/26, up 7.7 per cent year-on-year, as global demand for air travel remained strong.

At the same time, the group flagged concerns over rising jet fuel prices amid geopolitical tensions in the Middle East.

"The most immediate impact is on jet fuel prices, which have more than doubled since the conflict began, adding significant cost pressure for airlines," the release said.

Singapore Airlines added that while SIA and Scoot (low-cost airline subsidiary of Singapore Airlines) have raised fares across their network, "the adjustments do not fully offset the rise in the price of jet fuel."

- ANI