Singapore Airlines (SIA) reported a record revenue of 20.5 billion Singapore dollars ($16.06 billion) for its financial year ended March 31, with operating profit surging 39% to SG$2.38 billion, driven by higher demand, improved yields, and lower net fuel costs. However, the airline's net profit dropped 57.4% year-on-year to SG$1.18 billion, primarily due to Air India's significant losses and an accounting gain in the previous year [1]. SIA's earnings per share reached 38.4 Singapore cents, surpassing the expected 35 cents, and revenue also beat expectations at SG$20.5 billion versus SG$20.07 billion anticipated [1].
Air India, in which SIA holds a 25.1% stake following the merger of Vistara into Air India in December 2024, recorded a loss of SG$3.56 billion ($2.8 billion), exceeding the $2.4 billion expected loss reported by Bloomberg in April. SIA's share of this loss amounted to SG$945.2 million. Air India's financial struggles have weighed on SIA's bottom line since late 2024, when SIA began accounting for the Indian carrier [1].
Air India's operational challenges included the closure of Pakistan's airspace in April 2025, the crash of Flight 171 in June resulting in over 250 fatalities, and disruptions from the Iran war, which forced the airline to cancel nearly a third of its flights during the peak June to August travel period. Air India stated these cancellations were intended to improve network stability and reduce last-minute inconvenience to passengers [1].
Despite these setbacks, SIA CEO Goh Choon Phong reaffirmed the airline's commitment to supporting Air India, citing "tangible progress" in areas such as staff training and reduced customer complaints. He emphasized that the investment is a long-term strategic play, stating, "It is going to be a long game. There is no shortcut." SIA has already injected S$360 million in cash into Air India and committed up to S$880 million in additional capital. Air India is reportedly seeking at least 100 billion rupees (S$1.47 billion) in further financial support from SIA and Tata. When asked about additional capital injections, Goh declined to comment, indicating that discussions with fellow shareholders are ongoing [1].
Independent aviation analyst Brendan Sobie noted that SIA's venture into India's aviation market is strategic but has proven more unprofitable than anticipated, especially given the extraordinary losses over the past year [1].
CONCLUSION
Singapore Airlines' financial performance has been significantly impacted by Air India's losses, resulting in a sharp decline in net profit despite record revenue and operating profit. The airline remains committed to its long-term investment in Air India, but faces ongoing financial risks and uncertainty regarding future capital injections. Market sentiment is cautious given the scale of losses and operational disruptions at Air India.