New Delhi, May 14: Air India has reported a staggering loss of $2.8 billion for the fiscal year 2025-26, according to the annual report released by Singapore Airlines on Thursday.
The Singapore Airlines Group noted a 57.4% decline in net profit for the fiscal year ending March 2026, dropping to SGD 1.184 billion. The group holds a 25.1% stake in Air India, and the airline’s losses have adversely affected the group’s overall profitability.
The report indicates that Air India incurred a loss of SGD 3.56 billion, equivalent to approximately $2.80 billion at current exchange rates, over the 12 months leading up to March 2026. In contrast, the Singapore Airlines Group reported a net profit of SGD 2.778 billion for the fiscal year 2024-25.
Singapore Airlines Group reaffirmed its commitment to its 25.1% stake in Air India, viewing it as a crucial component of its long-term multi-hub strategy. This strategic investment provides the group with direct exposure to one of the world’s largest and fastest-growing aviation markets, strengthening its Singapore hub and aiding long-term growth.
In a press statement, the airline revealed that its net profit fell to SGD 1.594 billion, a 57.4% decrease. This decline was largely due to the absence of a non-cash accounting gain of SGD 1.098 billion from the Air India-Vistara merger completed in November 2024.
The company explained that while it had benefited from associate companies in the previous year, it recorded a loss of SGD 846 million this time. This was because the group included the full-year loss of Air India in its balance sheet, whereas the previous year only accounted for four months’ impact.
Air India has had to cancel several international flights in recent months. The closure of Pakistan’s airspace and ongoing tensions in the Middle East have affected the airline’s recovery plans.
According to data from the Ministry of Civil Aviation, there was a decline in both domestic and international air passenger numbers in India in April compared to March. The crisis in West Asia has led to a significant drop in international flights, while rising jet fuel prices have increased operational costs, further complicating the airline’s situation.
In April, India’s domestic air passenger count stood at 14.08 million, reflecting a 4% decrease on both annual and monthly bases. Meanwhile, international traffic saw a substantial 20% decline compared to March, with passenger numbers dropping to 2.83 million.
My name is Himanshu Tiwari. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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