Air India’s $2.79 billion loss drags down Singapore Airways’ revenue

Air India posted a full-year lack of US$2.79 billion (₹26,798 crore), inflicting a US$743 million hit on Singapore Airways’ backside line within the first full yr because the provider acquired a 25.1% stake within the Tata Group airline, dragging it into a pointy revenue decline regardless of document working revenue.

Singapore Airways (SIA), which holds a 25.1% stake in Air India, reported a 57.4% fall in full-year internet revenue to $930 million (SGD $1.18 billion) at the same time as working revenue surged 39% to $1.89 billion (SGD 2.4 billion). Its annual assertion additionally confirmed Air India’s hefty annual losses.

A reckoning for India’s aviation sector 

The monetary yr 2025-26 marks the primary full yr during which SIA absorbed the influence of Air India’s losses after buying its stake within the merged Air India-Vistara entity in November 2024.

In a press assertion, Singapore Airways attributed the sharp decline in internet revenue to “the absence of a previous yr one-off accounting acquire, coupled with the share of full yr losses from Air India.”

The monetary yr 2025-26 marks the primary full yr during which SIA absorbed the influence of Air India’s losses after buying its stake within the merged Air India-Vistara entity in November 2024.

Final yr, SIA had benefited from a $866 million (SGD1.098 billion) non-cash accounting acquire arising from the completion of the Air India-Vistara merger. As compared, FY25 mirrored solely 4 months of publicity to Air India’s losses, whereas FY26 accounted for all the yr.

Air India’s losses got here amid a yr marked by a number of headwinds, together with a pointy dent in passenger demand following the June 12, 2025 Ahmedabad crash, weakening journey demand from the U.S. market, ban of Pakistan airspace for Indian carriers, in addition to airspace restrictions in West Asia resulting from regional tensions that has compelled 5-6 hour longe detours for Air India flights to North America and sharply raised gasoline prices.

On Wednesday (Might 13, 2026), the airline introduced a 27% discount in flights throughout its worldwide community as hovering aviation turbine gasoline prices and operational disruptions weighed closely on profitability. The influence spilt past west-bound operations, affecting even east-bound routes to SAARC nations, Southeast Asia and the Far East.

Singapore Airways, although, mentioned on Wednesday (Might 13, 2026) that it was dedicated to the Air India three way partnership, including, “Air India faces headwinds equivalent to industry-wide provide chain constraints, airspace restrictions, constraints on operations to its key Center East markets, and elevated jet gasoline costs. Nonetheless, it continues to make progress in its fleet renewal and plane retrofit program, initiatives to raise the end-to-end buyer expertise, and enhance its operational efficiency.”