Singapore Airlines Trapped in Air India’s Money Pit With No Cheap Exit in Sight

A S$945 million annual hit, a US$1.5 billion funding call and a decade-long rebuild make SIA’s India bet its toughest strategic test.

Welcome to AviationOutlook: The aviation newsletter built exclusively for decision-makers.

Become an “Annual” member now & get this special discount offer.

As a paid member, you get access to:

• 200+ Reports - All major airlines + aerospace & defense companies (updated regularly).

• Daily / Weekly - Deep-dive analysis & insights.

• Monthly - Industry outlook reports.

---

In case you missed it, here are the latest analysis reports:

• Indra Sistemas - Company Analysis and Outlook Report 2026 (Updated)

• Royal Air Maroc - Strategic Analysis and Outlook Report 2026 (Updated)

• Embraer - Company Analysis and Outlook Report 2026 (Updated)

Check Out All Reports

---

Singapore Airlines had recently delivered one of the strangest earnings splits in its history. Operating profit surged 39% to S$2.38 billion on record revenue, yet net profit collapsed 57.4% to S$1.18 billion for the year ended March 2026.

The drag came from a single source: a S$945.2 million share of losses at Air India, the carrier SIA bought into less than two years ago.

Then the pressure intensified. In July, the group posted its first quarterly loss since the pandemic, and weeks later Air India went back to its owners seeking US$1.5 billion in fresh equity.

For anyone tracking India’s aviation boom, this entanglement has become the industry’s most instructive case study in what a strategic minority stake can sometimes costs.

SIA GROUP, FY2025/26 (ENDED 31 MARCH 2026)
Revenue:                  S$20.5 billion (record)
Operating profit:         S$2.38 billion (+39% YoY)
Net profit:               S$1.18 billion (-57.4% YoY)
Share of Air India loss:  S$945.2 million

Let’s analyze everything in detail.

Are you a part of a team?

Equip your whole team with aviation industry intelligence. Consider “Group” or “Enterprise” plan.

The Numbers Behind the Headline

Photo by Hieu on Unsplash

Strip out the noise and SIA’s core business is performing strongly.

Demand stayed robust, yields held up, and the group carried a record 10.9 million passengers in the June quarter alone, with quarterly revenue up 19.3% year on year.

The damage sits below the operating line. Because SIA holds 25.1% of Air India, equity accounting forces it to book a proportional slice of the Indian carrier’s results, and those results are grim: Air India posted a record annual loss of about S$3.56 billion, or US$2.8 billion, for the year ended March 2026.

The cumulative toll is striking.