Air India losses drag down Singapore Air’s profit; SIA committed to Maharaja ‘despite ongoing challenges’

NEW DELHI: Singapore Airlines (SIA) has seen its profit for the first half this year fall 68 per cent “notably” due to losses of Air India and some other factors. Owned 25.1 per cent by SIA and the rest by Tata Group, Air India group had lost Rs 9,568.4 crore in FY 2025. SIA said its group “net profit for the first half fell by $503 million (67.8 per cent) to $239 million.

Following the June 12 Ahmedabad crash, AI has reportedly sought more fund infusion from its promoters. According to agency reports, Air India is seeking at least Rs 10,000 crore($1.1 billion) in financial support from its promoters.

SIA said in a statement Thursday: “Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation programme,”

SIA group’s interest income fell $103 million from lower cash balances and interest rate cuts, while the "group’s share of results of associated companies was $417 million lower year-on-year, notably reflecting Air India’s losses which were not included in the previous year. The group began equity accounting for Air India’s financial performance from December 2024, following the full integration of Vistara into Air India,” SIA said in a statement, adding, “Share of losses from Air India and lower interest income drag(ged) down net profit.”

The net profit nosedived despite SIA group revenue rising by $178 million (1.9%) from the year before to a first half record of $9,675 million. “The demand for air travel remained strong, with SIA and Scoot carrying 20.8 million passengers, 8% more year-on-year,” SIA statement said.

Listing AI investment among its “strategic initiatives”, SIA said: “Singapore Airlines’ 25.1 per cent stake in the Air India Group is part of its long-term multi-hub strategy, providing a stake in one of the world's largest and fastest-growing aviation markets. This strategic investment complements the SIA Group’s Singapore hub, enabling direct participation in India’s domestic and international markets and unlocking access to new traffic flows. Despite the ongoing challenges, the SIA Group remains committed to working with its partner Tata Sons to support Air India’s comprehensive multi-year transformation programme.”