Singapore Airlines Profit Crashes 57% on Air India $2.8 Billion Loss

The aviation giant Singapore Airlines Group faced a rude shock with its fiscal year results for the period ended March 2026. Net profit nosedived by 57.4% to just 1.184 billion SGD, a far cry from the 2.778 billion SGD haul in FY 2024-25. At the heart of this downturn lies Air India, the Tata Group-owned carrier where SIA owns 25.1%. Air India bled 3.56 billion SGD ($2.8 billion) over the year, slamming the group's bottom line. SIA's annual report highlights its unwavering dedication to this partnership. "Air India is integral to our long-term multi-hub vision, offering a gateway to India's booming aviation sector and strengthening our global network," executives affirmed. Key factors dragging profits included no repeat of last year's merger-related windfall from the Air India-Vistara tie-up, which had delivered 1.098 billion SGD in non-cash gains. Associates turned loss-making, posting an 846 million SGD deficit after accounting for Air India's entire annual shortfall—versus a limited slice last year. Operationally, Air India has been battered by geopolitical turbulence. Flight cancellations mounted due to restricted Pakistani airspace and West Asian conflicts, derailing turnaround efforts. Aviation ministry figures paint a grim picture: April's domestic passengers dipped to 14.08 million, down 4% annually and from March. International traffic cratered 20% month-on-month to 2.83 million amid regional unrest. Skyrocketing aviation turbine fuel costs have squeezed margins further. With India’s skies clouded by these issues, SIA's bet on Air India tests its strategic patience. Recovery hinges on resolving external pressures and internal efficiencies, but for now, the losses underscore the high stakes in emerging markets.