Singapore Airlines (SIA) Group on Thursday reported a 57.4 per cent decline in net profit to 1.184 billion Singapore dollars (SGD) for the financial year ended March 2026, impacted by losses from Air India and the absence of a one-time accounting gain recorded in the previous year from the Air India-Vistara merger, PTI reported.
The airline group had posted a net profit of SGD 2.778 billion in 2024-25. SIA Group said its net profit declined by SGD 1.594 billion primarily due to the absence of the SGD 1.098 billion non-cash accounting gain recognised in November 2024 upon the completion of the Air India-Vistara merger.
The swing from a share of profits of associated companies last year to a loss this year (SGD 846 million) was due to the Group accounting for its share of Air India's full year losses, versus only four months the previous year, the company said in a release. Specific details of Air India's losses were not disclosed.
SIA Group, which holds a 25.1 per cent stake in Air India Group, said the investment remains a core component of its long-term multi-hub strategy. This strategic investment provides the Group with a direct stake in one of the world's largest and fastest-growing aviation markets, complementing its Singapore hub and strengthening its long-term growth.
Despite the profit decline, the group's total revenue rose 5 per cent to SGD 20.552 billion in 2025-26 from SGD 19.540 billion in the previous fiscal. The company said Air India continues to face operational and financial challenges arising from airspace restrictions, elevated jet fuel prices and global supply chain constraints.
SIA is working closely with its partner Tata Sons to support Air India's multi-year transformation programme, the release said. Air India faces headwinds such as industry-wide supply chain constraints, airspace restrictions, constraints on operations to its key Middle East markets, and elevated jet fuel prices, it added.
However, SIA said Air India was making progress in fleet renewal, aircraft retrofit programmes, customer experience initiatives and operational improvements. Vistara, earlier jointly owned by Tata Sons and Singapore Airlines, was merged with Air India in November 2024 as part of the Tata Group's airline consolidation strategy.
According to estimates for 2025-26, Air India Group comprising Air India and Air India Express is projected to have incurred losses exceeding Rs 22,000 crore. On Wednesday, Air India announced it would cut nearly 100 international flights and temporarily suspend operations on seven overseas routes, including Delhi-Chicago, resulting in up to 27 per cent reduction in international capacity amid mounting operational costs linked to airspace curbs and high fuel prices.
