Air India’s losses hurt its largest shareholder Singapore Airlines
Losses at Air India caused profits for its largest shareholder, Singapore Airlines, to fall in the six months ended September.
Singapore’s flagship airline’s net profit falls 67.8% annual According to the statement, it reached S$239 million for the April-September period. It attributed the decline mainly to accounting losses from Singapore Airlines’ partner company Air India, in which it holds 25.1% equity.
“…The Group’s share of associated companies’ results was S$417 million lower year-on-year, reflecting in particular Air India’s losses not included in the previous year’s net profit,” it said in a statement.
Low interest income due to low cash balances and interest rate cuts also put pressure on profits.
Singapore Airlines’ second-quarter net profit fell 82.1% year-on-year to S$52 million. This was largely due to “share of results of associated companies” (S$295 million) and lower interest income (down S$42 million).
It is unclear whether the entire loss of the companies involved is linked to Air India.
SIA’s investment in Air India
Air India Group, the country’s second largest airline with a market share of 27%, is a private enterprise and submits its results to the Ministry of Corporate Affairs annually. It does not disclose quarterly figures.
Earlier, Tata Sons and Singapore Airlines jointly owned Vistara (here in India) in a 51:49 ratio. Following the acquisition of Air India in January 2022 followed by the merger of Vistara in November 2024, Singapore Airlines saw its equity stake realigned to 25.1%, while Tata Sons Pvt Ltd retained the remaining 74.9%.
Singapore Airlines holds a board seat in Air India along with equity stakes, a position currently held by CEO Goh Choon Phong.
The airline also invested ₹6,300 crore in the merged carrier’s recapitalization plan.
In the financial year ending March 31, 2025, Tata-owned Air India’s revenue increased by 15% ₹78,636 crore, but its net loss ₹10,859 crore. The consolidated entity includes Air India, Vistara, Air India Express and AIX Connect, and its financials have been reported as a single consolidated group for the first time. A five-year turnaround plan is under way under CEO Campbell Wilson.
long term strategy
Wilson said the airline faced “unprecedented shocks” this year, citing the June 12 crash that killed 12 crew and 229 passengers and the closure of Pakistani and Middle Eastern airspaces as a “heavy financial and operational blow.” He estimated that the closure of Pakistani airspace, which began following Operation Sindoor in May, would cost approx. ₹4,000 crore if it continues for the whole year.
Despite the decline in earnings, Singapore Airlines reiterated that its investment in Air India is part of a long-term strategy to strengthen its position in Asia’s fast-growing aviation market.
“SIA Group is committed to working with Tata Sons to support Air India’s comprehensive multi-year transformation programme,” the airline said.
Singapore Airlines has described its 25.1% stake in Air India as a key element of its “multi-hub strategy” designed to gain a foothold in one of the world’s largest and fastest-growing aviation markets while complementing its home base in Singapore. Singapore Airlines said the partnership will also help unlock new traffic flows between South Asia and key global routes.
Elara Capital analyst Gagan Dixit said the accounting hit from Air India’s losses was expected. “Air India continues to wait for more fuel and cost-effective Boeing aircraft, which is one of the key reasons why fleet renewals have slowed down. This has affected profitability. On top of that, India had a difficult September quarter and experienced unprecedented shocks such as airspace closures.”
