Air India inflicts $945 million hit on Singapore Airlines, dragging FY26 profit down 57%

Air India’s losses reduced Singapore Airlines’ profitability in the 2025-26 financial year; The Tata Group airline contributed $945.2 million to the Singapore carrier’s profitability in the first full year since the Air India-Vistara merger.

Singapore Airlines (SIA), which has a 25.1% stake in Air India, reported a 57.4% decline in full-year net profit to $1.18 billion, as operating profit rose 39% to $2.4 billion. Financial year 2025-26 marks the first full year in which SIA absorbs the impact of Air India’s losses following its acquisition of stake in the merged Air India-Vistara entity in November 2024.

The airline, in a press release on Thursday, May 14, 2026, attributed the sharp decline in net profit to “the absence of a one-off accounting gain in the previous year and Air India’s share of full-year losses”.

Last year, SIA benefited from a non-cash accounting gain of $1.098 billion from the completion of the Air India-Vistara merger. In comparison, FY25 reflected only four months of loss exposure for Air India, while FY26 covered the entire year.