Singapore Airlines Keeps Air India Stake Despite S$361.7M Loss

Singapore Airlines (SIA)’s 25.1% stake in Air India absorbed S$361.7 million (US$281.5 million) of the Indian carrier’s losses in the six months ended September 30, nearly 2.7 times SIA’s S$134 million (US$104 million) net profit.

The result came despite record group revenue of S$11.3 billion (US$8.8 billion). Net profit fell 44% from a year earlier, while SIA’s share of Air India losses improved from S$429.5 million (US$334 million) to S$361.7 million.

SIA’s own airline operations remained profitable, generating S$569 million (US$443 million) in operating profit, or profit before interest and tax. A 56% rise in net fuel costs after hedging, meaning the use of fuel-price protection, offset part of that result and left Air India as the dominant drag on group earnings.

Why did profit fall despite record revenue?

SIA said its share of losses from associated companies, meaning investments over which it exercises significant influence, came mainly from Air India. That share fell S$110 million (US$85.6 million) year over year in the three months ended September, more than the S$68 million improvement for the six-month period.

All of the half-year improvement landed in the second quarter. Because the quarterly gain exceeded the six-month gain, first-quarter losses were worse than a year earlier. The result shows improvement, but not yet a stable downward path.

What does the Air India stake cost now?

The Air India stake’s carrying value, meaning the amount recorded on SIA’s balance sheet, fell to S$800 million (US$622 million) from S$1.135 billion at the end of March. Irrespective of that lower valuation, Air India still dominates SIA’s reported earnings drag.

SIA gave no timetable for Air India to return to profitability and announced no new funding. It nevertheless kept the 25.1% stake, warning that the transformation "will take time" and describing Air India as a "key part of its multi-hub strategy," meaning a network built around multiple connecting hubs.

The strategic rationale remains intact, but neither an earnings deadline nor a capital timetable accompanied the decision. For travel sellers, that gap leaves uncertainty over how quickly Air India’s financial strain could affect capacity, pricing and service reliability.

What funding is planned for Air India?

Air India Group reported a combined loss of about US$2.3 billion in fiscal 2026, more than double the prior year. The reported deterioration followed the June 2025 crash, the closure of Pakistani airspace, aircraft delivery delays and higher fuel costs.

Tata Sons and SIA are preparing 100 billion Indian rupees (INR; US$1.1 billion) of fresh capital for Air India, with releases tied to performance milestones. SIA’s share comes to about US$276 million, according to Skift’s September report. The arrangement remains a plan, not a completed infusion or evidence of a return to profit.

Air India’s fleet retrofit and modernization program includes cabin work on its Airbus A320neo aircraft. SIA’s exposure therefore spans modernization and operating disruption, while its profitable core has yet to receive an offsetting Air India profit contribution.

SIA’s next results must show whether the second-quarter improvement persists before Air India can narrow its loss share consistently. Until then, the capital plan remains preparatory and the multi-hub case rests on a transformation with no profitability date, while the 25.1% stake consumes a disproportionate share of group earnings.