Singapore Airlines Stands by Air India as Its Share of Losses Dwarfs Half-Year Profit

SINGAPORE, November 11, 2026 – Singapore Airlines is standing firmly behind its investment in Air India, even though its share of the Indian carrier’s losses in the first half of the financial year came to roughly 2.7 times the Singapore group’s own net profit.

The SIA Group said its net profit for the six months to September 30 fell 43.9% to S$134 million, from S$239 million a year earlier, according to its official results release. Revenue hit a half-year record of S$11.3 billion, up 16.8%, as the group carried a record 21.8 million passengers and earned stronger yields, The Business Times reported.

Over the same period, SIA booked a S$361.7 million share of losses from Air India, in which it holds a 25.1% stake. That is an improvement on the S$429.5 million it absorbed a year earlier, and SIA said the lower share of losses from associated companies, mainly Air India, added S$68 million to the bottom line compared with last year. Skift, which highlighted the comparison on X, noted that the Air India share alone was nearly 2.7 times the group’s net profit.

A stronger second quarter

The better news landed in the second quarter. Net profit for the three months to September 30 rose to about S$210 million from S$52 million a year earlier, The Business Times reported, helped by a 16.3% rise in operating profit and a smaller hit from Air India. SIA’s own release shows the group’s operating profit for the full half still fell 29.1% to S$569 million, with net fuel costs up 56% as jet fuel prices climbed sharply. The Economic Times, citing Bloomberg, reported that average jet fuel prices rose 86.7% year on year to US$171 a barrel.

There was one important caveat. The Straits Times reported that, according to SIA’s management at the results briefing, the narrower Air India share was mainly due to a reversal of provisions made in earlier years, rather than a clear improvement in Air India’s own performance.

“A transformation of this scale will take time”

SIA did not give a date for Air India to return to profit. In its results statement, quoted by The Hindu BusinessLine, the group said that it and Tata Sons “recognise that a transformation of this scale will take time”, and that both partners are working closely to support Air India’s journey towards profitable growth, including improving cost efficiency, unlocking synergies between Air India and Air India Express and sharpening its commercial strategy.

SIA also pointed to progress at the Indian airline, including a better customer experience, stronger operational performance and an improving Net Promoter Score. Air India sits at the heart of SIA’s so-called multi-hub strategy, which gives the Singapore group a direct stake in one of the world’s fastest-growing aviation markets.

Dividends and what comes next

Shareholders will still get a payout. The board declared an interim ordinary dividend of 2 cents and an interim special dividend of 5 cents a share, for a total of 7 cents, payable on December 11, 2026, The Business Times reported. The budget arm Scoot grew its revenue by 29.4% and narrowed its operating loss.

Looking ahead, SIA said passenger demand remains healthy and cargo demand firm, but warned that fuel prices remain high compared with pre-conflict levels. Fare and cargo-rate adjustments have not fully offset those costs, so the group says it will keep a tight grip on spending while continuing to invest in both SIA and Scoot.

For travellers in Malaysia and across the region, the message is that one of Asia’s strongest airline groups is still very much open for business, while its big bet on India remains a patient, long-term play.

Sources: Singapore Airlines Group results release; The Business Times; The Straits Times; The Economic Times (Bloomberg); The Hindu BusinessLine; Skift on X (post).

Credit : Skift’s X

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