Air India drags Singapore Airlines net profit

Singapore Airlines Group’s half-year net profit tumbled -67.8% to SGD 239 million, partly due to losses from Air India, its joint-venture airline with Tata Group.

It garnered robust operating profit of SGD 803 million due to healthy passenger demand and lower fuel prices, the airline said in a press statement.

The Group’s net profit for the first half fell by $503 million (-67.8%) to $239 million largely due to lower interest income from lower cash balance and losses from associate companies, including Air India.

Interest income fell $103 million from lower cash balances and interest rate cuts. The Group’s share of results of associated companies was $417 million lower year-on-year, “notably reflecting Air India’s losses”. These losses were not included in the previous year as the Group began equity accounting for Air India’s financial performance from December 2024, following the full integration of Vistara into Air India.

The Singapore Airlines Group, which has a 25.1% stake in the Air India Group, reiterated its support for the latter. “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.”

Air India is also facing an enquiry after a Boeing 787 aircraft crashed in Ahmedabad on June 12.