Air India inflicts $945 million hit on Singapore Airlines, dragging FY26 profit down 57%

Air India’s losses dragged down Singapore Airlines’ profitability in financial year 2025-26, with the Tata Group airline contributing a hit of $945.2 million to the Singapore carrier’s bottom line in the first full year since the Air India-Vistara merger.

Singapore Airlines (SIA), which holds a 25.1% stake in Air India, reported a 57.4% fall in full-year net profit to $1.18 billion even as operating profit surged 39% to $2.4 billion. The financial year 2025-26 marks the first full year in which SIA absorbed the impact of Air India’s losses after acquiring its stake in the merged Air India-Vistara entity in November 2024.

In a press statement on Thursday (May 14, 2026), the airline attributed the sharp decline in net profit to “the absence of a prior year one-off accounting gain, coupled with the share of full year losses from Air India”.

Last year, SIA had benefited from a $1.098 billion non-cash accounting gain arising from the completion of the Air India-Vistara merger. In comparison, FY25 reflected only four months of exposure to Air India’s losses, while FY26 accounted for the entire year.