Air India’s share of Singapore Airlines’ associated-company losses fell 16% in the first half of the financial year, signalling progress in the carrier’s cost-cutting programme even as higher jet fuel prices pushed down the Singapore-based group’s overall profit.
Singapore Airlines said Air India’s loss contribution declined to Rs 2,643 crore in the first half from Rs 3,138 crore in the same period a year earlier. Based on the figures reported by the group, Air India’s overall losses were indicated at about Rs 10,530 crore, down from Rs 12,502 crore in the corresponding period last year.
The improvement in Air India’s loss contribution was not enough to offset the pressure on Singapore Airlines’ wider business. SIA Group reported a net profit of Rs 979 crore for the first half, a 44% decline from Rs 1,746 crore in the same period last year. Its fuel bill rose 56% to Rs 29,038.5 crore during the period.
SIA’s second-quarter performance was stronger than its first-half trend. The group reported a profit of Rs 1,534 crore in the quarter, compared with Rs 1,154 crore a year earlier. It attributed the improvement to stronger operating profit and a lower share of losses from associated companies, mainly because of an Rs 804-crore improvement linked to Air India.
The figures provide an early financial measure of Air India’s multi-year transformation under the Tata Group, with Singapore Airlines remaining a strategic partner in the airline group. SIA said Air India had made tangible progress in customer experience and operational performance, alongside improving customer sentiment. It added that a transformation of this scale would take time.
The partnership is also being built around traffic and network integration rather than only financial support. SIA describes its stake in Air India as a key part of its multi-hub strategy, giving the group participation in one of the world’s largest and fastest-growing aviation markets while expanding access to traffic flows beyond its Singapore hub.
Following a commercial cooperation agreement signed in January 2026, Air India and Singapore Airlines launched the first phase of joint initiatives in October. These included additional flights between Singapore and eight Indian cities and a more seamless booking experience for passengers. The airlines had also introduced enhanced reciprocal loyalty programme benefits in April 2026, with further benefits planned for the second quarter of 2027.
For India’s aviation system, the developments connect Air India’s financial recovery with the expansion of international connectivity and the consolidation of a major full-service airline group. The operational gains cited by SIA remain accompanied by substantial losses, while fuel prices continue to affect airline economics across the network.
SIA said it would maintain disciplined cost management while continuing strategic investment in Singapore Airlines and Scoot, advancing its multi-hub strategy through Air India and deepening partnerships with other carriers. The next stated milestone for the Air India-Singapore Airlines relationship is the planned expansion of reciprocal loyalty benefits in the second quarter of 2027.
