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Singapore Airlines suffered a 59 per cent drop in profits last quarter as it was hit by losses from its stake in Air India, the carrier embroiled in India’s worst aviation disaster in three decades.
Net profits at Singapore’s national carrier fell from S$266mn ($207mn) to S$186mn compared with the same period last year, the group reported on Monday. It said its losses from associated companies, “notably from Air India’s financial results”, were S$122mn for the three months to the end of June.
Singapore Airlines’ revenue rose 1.5 per cent to S$4.8bn for the quarter, which the group said showed demand for air travel remained strong despite economic and geopolitical uncertainties.
More than 240 passengers and crew died when an Air India flight bound for London crashed shortly after taking off from Ahmedabad in June, leaving a sole survivor.
Global focus has shifted to the roles of the Air India pilots following media reports that the captain may have turned off the plane’s fuel switches shortly after take-off. However, earlier this month, India’s Air Accident Investigation Bureau cautioned foreign media against “irresponsible” speculation about the causes of the disaster as the probe continued.
Singapore Airlines acquired a 25 per cent stake in Air India last year after its joint venture with Tata Sons, Vistara, was absorbed in a merger. Tata had bought Air India out of state ownership in 2022.
However, Tata has struggled in its efforts to revamp the flag carrier, which even before the crash had been continually criticised by passengers for poor service and ageing craft.
It also faces aggressive competition at home from India’s now dominant carrier, IndiGo, which enjoys a near two-thirds domestic market share in the country and is steadily increasing its international routes.
Earlier this month, Tata reported that privately held Air India registered an annual loss of Rs108.59bn ($1.25bn) in the year to the end of March 2025, the first time it had published financial details since the full merger with its sister airlines.
Singapore Airlines said it was committed to its Indian business. “Working closely with its longtime partner Tata Sons, the group will continue to support Air India’s ongoing transformation journey,” it said as part of its results.
