Air India's losses 'dragged' down net profit in H1: Singapore Airlines

Singapore Airlines reported a 67.8% drop in H1 profit, citing Air India's losses and lower interest income as key factors

Air India’s losses as well as lower interest income were two key reasons that “dragged” down the net profit of Singapore Airlines (SIA) Group by 67.8 per cent year-on-year (Y-o-Y) in the first half of 2025-26 (FY26), the Singaporean carrier stated on Thursday.

 

The SIA Group — which holds a 25.1 per cent stake in the Air India Group — reported a net loss of $239 million in H1 of FY26 as compared to $742 million in the same period of the last financial year.

 

“Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation programme,” the company said. Tata Sons hold a 74.9 per cent stake in the Air India Group.

 

The SIA Group stated that its shareholding in Air India is a part of its long-term multi-hub strategy, which gives it a presence in one of the world’s fastest-growing aviation markets. The airline said this partnership complements its Singapore hub and allows it to participate directly in India’s domestic and international air travel.

 

“The Group’s net profit for the first half fell by $503 million (-67.8 per cent) to $239 million. Interest income fell $103 million from lower cash balances and interest rate cuts, while the Group’s share of results of associated companies was $417 million lower Y-o-Y, notably reflecting Air India’s losses, which were not included in the previous year. The Group began equity accounting for Air India’s financial performance from December 2024, following the full integration of Vistara into Air India,” it mentioned.

 

The SIA Group earlier held a 49 per cent stake in Vistara, a full-service airline jointly owned with Tata Sons, which held the remaining 51 per cent. As part of the merger of Vistara with Air India, the SIA Group contributed its entire 49 per cent stake in Vistara along with Rs 2,058.5 crore in cash in exchange for a 25.1 per cent stake in the enlarged Air India Group, alongside Tata Sons’ controlling share.