Air India reported a significant loss of $2.8 billion for the financial year 2025-26, as per the annual report of Singapore Airlines released recently. This loss contributed to a 57.4% decrease in net profit for Singapore Airlines Group, amounting to SGD 1.184 billion for the fiscal year ending March 2026. Singapore Airlines holds a 25.1% share in Air India.
The report revealed that Air India’s losses totaled SGD 3.56 billion, equivalent to $2.80 billion based on current exchange rates, for the 12-month period up to March. In contrast, Singapore Airlines Group had achieved a net profit of SGD 2.778 billion in the previous financial year 2024-25. The airline group emphasized its commitment to the 25.1% investment in Air India as part of its long-term multi-hub strategy.
Singapore Airlines Group stated that the strategic investment in Air India provides direct access to one of the world’s largest and fastest-growing aviation markets, complementing its Singapore hub and enhancing long-term growth prospects. The Group’s net profit saw a decline of SGD 1.594 billion, or 57.4%, primarily due to the absence of a non-cash accounting gain of SGD 1.098 billion recognized in November 2024 following the Air India-Vistara merger completion.
The shift from a share of profits to a loss of SGD 846 million this year was attributed to accounting for Air India’s full-year losses compared to only four months in the previous year. Air India, facing financial challenges, had to cancel multiple international flights due to airspace closures in Pakistan and the Middle East conflict, impacting its revival efforts. The closure of Pakistan’s airspace and the Middle East conflict have adversely affected the airline’s operations.
India’s air traffic witnessed a slowdown in April compared to March, both for domestic and international passengers, according to data from the Ministry of Civil Aviation. The decline in air traffic is linked to the Middle East conflict, leading to a significant reduction in international flights. Rising jet fuel prices have further increased operating costs, posing additional challenges to Air India’s turnaround plans. Domestic air traffic in India dropped by 4% year-on-year, with international traffic experiencing a sharper decline of 20% in April compared to March.
