Singapore Airlines backs Air India despite billion-dollar losses
Singapore Airlines Ltd has reaffirmed its confidence in Air India, saying the Tata Group-backed carrier is making tangible progress in its transformation, but that rebuilding the airline will take time.
The Singapore carrier, which owns a 25.1% stake in Air India Group, reiterated its commitment in its results announcement to the Singapore stock exchange on Wednesday.
Its second-quarter net profit rose to S$209.7 million from S$52.4 million, helped by stronger operating performance and a lower share of losses from associated companies, mainly Air India. On 11 November 2026, S$1 was worth approximately US$0.78 and ₹73.07.
For the six months ended September, however, Singapore Airlines' net profit fell 44% to S$133.9 million. Operating profit declined 29% to S$569.2 million, and revenue rose 16.8% to S$11.3 billion. Lower losses from associated companies, mainly Air India, partly offset the decline in operating profit.
In its statement to the bourses, Singapore Airlines said Air India had made tangible progress in its multi-year transformation. "Air India has made tangible progress in its multi-year transformation, including enhancements to customer experience and operational performance,” it said.
Transformation, including profitability, "will take time”, the airline reiterated.
"SIA and its partner, Tata Sons, continue to work closely to support Air India's journey towards profitable growth, including strengthening structural cost efficiencies, unlocking greater synergies between Air India and Air India Express, sharpening its commercial strategy to navigate current external challenges, and elevating its customer proposition."
Singapore Airlines’ share of Air India’s losses was S$361.7 million (about $283 million) in April-September, down from S$429.5 million ($332 million) a year ago. Based on SIA’s 25.1% stake, this implies Air India lost roughly S$1.44 billion ($1.13 billion) over the six months, Mint calculations show. The figure may differ from Air India’s own accounts due to accounting adjustments.
Privately held Air India does not publish quarterly results like listed carriers; its financial statements are available through statutory filings with the ministry of corporate affairs.
Singapore Airlines' investment in Air India has also faced scrutiny in the island nation. Workers' Party lawmaker Kenneth Tiong questioned whether SIA's exposure to Air India could affect its ability to provide essential services at home, following reports that Air India was seeking another $1.5 billion from its shareholders.
The government there has defended the investment, saying Air India's losses did not automatically become SIA's liabilities.
The investment in Air India dates back to 2013, when SIA and Tata Sons established Vistara as a joint venture. Following Vistara's merger with Air India in November 2024, SIA received a 25.1% stake in the enlarged group and invested S$360 million. It views the holding as a key part of its multi-hub strategy, giving it access to India's aviation market.
Air India’s ability to generate profitability has drawn scrutiny. Tata Sons chairman N. Chandrasekaran estimates that the airline's turnaround would take 5 to 10 years. “Every great airline in history was built over decades, not quarters,” he had said in July.
The scale of the challenge is evident in Air India's FY26 performance. The group reported a consolidated net loss of ₹22,238 crore, while revenue declined to ₹70,086 crore (from ₹76,754 crore).
New chief executive Tewolde Gebremariam, who took charge in September, following the abrupt departure of Campbell Wilson, has responded by sharpening the focus on costs.
He has set up a multidisciplinary team to examine expenditure, tightened approvals for staff on-duty travel, introduced rewards for employee cost-saving ideas and pushed for greater integration between Air India and Air India Express to reduce duplication.
He has also called for higher revenue, lower costs and improved efficiency, as the airline grapples with longer routes and additional fuel expenses following Pakistan's airspace closure.
The operating environment remains difficult for Indian carriers. IndiGo, the country's largest airline, reported a September-quarter net loss of ₹1,879 crore, as higher fuel costs and rupee depreciation weighed on profitability.
Abhishek Law has spent 18 years in journalism, which in news industry terms means he has survived several newsroom restructurings, countless “urgent” press releases, and more cups of tea than he can reasonably count. Based in New Delhi, he covers aviation for Mint, a sector where aircraft, oil prices, geopolitics and airline CEOs regularly conspire to make his life interesting.<br><br>Most of his time gets occupied by translating airline jargon like ASKs, yields, load factors and fleet strategies into language that doesn’t require a pilot’s licence. His motto is simple: if readers need a glossary, he hasn’t done his job properly.<br><br>On most days, the quadragenarian is tracking airline strategies, policy changes and the occasional mid-air disruption that suddenly become a stock market story. When planes are behaving themselves (which is not very often nowadays), he strays into other corporate beats like steel, trying to figure out what’s really happening.<br><br>He loves to talk, especially ask—that one more question which people are uncomfortable with, and saving contacts in his phone as a "Source who may or may not pick up calls”. <br><br>But, on a serious note, the goal remains simple: cut through jargon, find that additional detail, and turn complicated business stories into something one can actually enjoy reading.
Get Latest real-time updates
Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
More
✕
Wait for it…
Oops! Looks like you have exceeded the limit to bookmark the image. Remove some to bookmark this image.