SIA open to more Air India funding despite hefty $945m loss share

SINGAPORE: Singapore Airlines (SIA) Group has confirmed that it remains open to providing further financial support to Air India and has said that it will assess any future requests for additional capital despite absorbing a substantial share of losses from the Indian carrier during the 2025/26 financial year.

Responding to questions from the Securities Investors Association (Singapore), the airline said its board would evaluate any future capital injections by taking into account the group’s broader funding requirements as well as Air India’s long-term business strategy.

It did not specify a maximum amount it would be prepared to invest.

SIA recorded a share of losses amounting to S$945.2 million from its 25.1% stake in Air India during the financial year. As a result, the carrying value of that investment fell sharply to S$1.13 billion as at March 31, 2026, down from S$2.02 billion a year earlier.

According to SIA, Air India continued to grapple with a range of operational and financial challenges, including elevated fuel prices, the depreciation of the Indian rupee against the US dollar, ongoing supply chain disruptions, the closure of Pakistani airspace to Indian airlines, and the impact of the AI171 accident.

Despite these setbacks, SIA said the airline had continued to make progress in several areas of its transformation, including improvements to customer experience, expansion of its fleet and route network, enhancements to products and services, and stronger operational performance.

SIA also highlighted its involvement in Air India’s strategic direction through its representation on the airline’s board. Chief Executive Officer Goh Choon Phong serves as a non-executive and non-independent director on the Air India board.

The group said this arrangement allows SIA and Tata Sons to work together through the Air India board to provide strategic guidance to the airline’s management team whenever necessary.

Air India’s performance has weighed on SIA Group’s earnings for about five consecutive quarters.

The losses were a major factor behind the sharp decline in SIA’s bottom line, despite the group delivering a strong operating performance for the year ended March 31, 2026.

When it announced its annual results in May, SIA reported record revenue of S$20.5 billion, supported by robust passenger demand, stronger yields and lower full-year net fuel costs. Operating profit climbed 39% to S$2.38 billion.

However, net profit dropped 57.4% year on year to S$1.18 billion. The airline attributed the decline mainly to Air India’s losses, as well as the absence of an accounting gain that had boosted results in the previous financial year.

Air India posted a loss of S$3.56 billion, equivalent to about US$2.8 billion, exceeding Bloomberg’s April forecast of a US$2.4 billion loss. SIA’s share of that loss totalled S$945.2 million.

Even with the significant financial impact, SIA has maintained that it remains committed to supporting Air India’s recovery.

Speaking during the group’s earnings briefing back in May, Mr Goh said Air India had achieved “tangible progress” under its transformation programme but stressed that rebuilding the airline would require patience.

“It is going to be a long game. There is no shortcut,” he said, adding that SIA would continue backing its Indian partner.