Singapore Airlines’ share of Air India’s losses narrowed in the first half of the financial year, but the carrier’s net profit still fell nearly 44% as higher jet fuel costs and Middle East tensions increased pressure on global aviation earnings.
Singapore Airlines reported a net profit of S$134 million for the six months ended Wednesday, compared with S$239 million in the same period a year earlier. The result was above the S$65.3 million expected by analysts polled by Visible Alpha.
The airline’s share of Air India’s losses declined to S$361.7 million from S$429.5 million in the comparable period. Losses from other associates also narrowed, partly offsetting the impact of higher fuel and operating expenses.
Singapore Airlines’ total costs rose by more than 20% to S$10.73 billion. Fuel costs before hedging increased by more than 90%, while average jet fuel prices rose 86.7% year on year to US$171 per barrel. Revenue nevertheless increased 16.8% to S$11.30 billion.
The airline said its performance was also affected by weaker results in the first quarter. It warned that geopolitical uncertainty and the continuing conflict in the Middle East were affecting operations and supply chains, while elevated fuel prices continued to weigh on costs. Fare and cargo-rate increases had not fully offset the impact of sustained fuel inflation, it said.
For Air India, the results highlight the financial pressure surrounding its multi-year transformation under the Tata Group, which took control of the former state-owned carrier in 2022. The programme includes integrating group airlines, refurbishing older aircraft, adding new planes and expanding the international network.
Air India’s consolidated loss widened to ₹22,238 crore in the financial year ended March 2026, from ₹10,859 crore a year earlier, according to the report. Tata Sons’ board has approved in principle a fresh capital infusion of more than ₹10,000 crore, subject to conditions including the submission of a business case when the airline seeks the funds.
Air India has also been seeking around ₹10,000 crore in new bank loans to support fleet expansion, aircraft refurbishment and operating expenses. Some lenders have asked for greater clarity on the airline’s cash flows and turnaround plans before providing additional financing. Reuters had separately reported in August that Air India was seeking about $1.5 billion in fresh equity from Tata Sons and Singapore Airlines, although discussions had not reached a final decision at that time.
Singapore Airlines said Air India had made tangible progress, but cautioned that a transformation of this scale would take time. Tata Sons and Singapore Airlines remain committed to supporting the Indian carrier’s effort to achieve profitable growth, including through structural cost efficiencies, greater synergies between Air India and Air India Express, a sharper commercial strategy and improvements to the customer proposition.
Air India created a multidisciplinary team in October to identify cost-saving opportunities. Its new chief executive and managing director, Tewolde Gebremariam, has also urged employees to adopt greater frugality and accountability.
The two airlines continue to expand their commercial relationship. They signed an agreement in January to deepen cooperation and explore a broader joint business arrangement. In October, their partnership was widened to cover 126 weekly flights between Singapore and eight Indian cities, along with expanded booking and frequent-flyer benefits. Singapore Airlines’ latest financial report records its share of Air India’s losses as the carrier continues to pursue the next stages of its turnaround.
