Air India's Losses Impact Singapore Airlines' Profits Significantly
Air India FY26 losses pull Singapore Airlines' profit down by 57%
The Economic Times
Image: The Economic Times
Air India's losses surged to ₹25,606 crore (approximately $2.6 billion) in FY26, causing Singapore Airlines' profit to drop by 57%. Despite this setback, Singapore Airlines remains committed to its 25.1% stake in Air India, viewing it as essential for accessing India's growing aviation market.
- 01Air India's losses more than doubled to ₹25,606 crore in FY26.
- 02Singapore Airlines' profit fell by 57% to S$1.18 billion due to Air India's financial struggles.
- 03The losses at Air India are attributed to currency fluctuations, compliance costs, and external shocks.
- 04Singapore Airlines continues to support Air India's turnaround efforts despite the challenges.
- 05Air India's operational issues include airspace restrictions and increased fuel costs.
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Air India, owned by the Tata Group, reported a staggering loss of ₹25,606 crore (about $2.6 billion) for the fiscal year ending March 31, 2026. This significant loss has heavily impacted Singapore Airlines, reducing its net profit by 57% to S$1.18 billion (approximately ₹8,864 crore). The airline attributed its losses to unfavorable currency movements, new labor code compliance costs, and external factors such as detours due to the closure of Pakistani airspace and financial repercussions from the crash of Flight 171. Despite these challenges, Singapore Airlines reaffirmed its commitment to its 25.1% stake in Air India, considering it a vital part of its strategy to penetrate the rapidly growing Indian aviation market. The airline is actively collaborating with Tata Sons to facilitate Air India's turnaround amidst ongoing operational difficulties.
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The financial struggles of Air India could lead to higher ticket prices and reduced flight availability, affecting travelers and the broader aviation market.
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