Singapore Airlines Group will retain its 25.1% stake in Air India (AI, Delhi International) and support the ongoing transformation of the carrier, despite a sizeable net loss for the financial year that ended on March 31, 2026, chief executive Goh Choon Phong reassured during a recent briefing, according to The Business Times newspaper.
The parent holding of Singapore Airlines said Air India was in a large part responsible for the 57.4% year-to-year drop in net profit to SGD1.2 billion Singaporean dollars (USD921 million). This included both the absence of the one-off net gain recognised during the 2024 Air India-Vistara merger, which added SGD1.1 billion (USD860 million) to last year’s results, and the full-year consolidation of Air India’s losses.
Air India reportedly approached Tata Sons and Singapore Airlines for additional funding after a loss of INR220 billion Indian rupees (USD2.4 billion) during financial year 2025, which ended March 2025. Losses reportedly worsened the following financial year, with the carrier posting a net deficit of about SGD3.8 billion (USD3 billion).
The Indian flag carrier endured severe operational disruptions in 2025, including the closure of Pakistani airspace to its overflights in April, a fatal B787 crash in June, and restrictions linked to the Iran conflict. To curb losses, Air India plans to cancel 27% of its international flights, or nearly 150 weekly services, between June and August 2026. The airline said the cuts aim to “improve network stability and reduce last-minute inconvenience to passengers.”
To assist with the turnaround, Singapore Airlines seconded Basil Kwauk as chief operations officer and Jeremy Yew as engineering and maintenance head to Air India. ch-aviation previously reported the placement of then-unnamed Singapore Airlines executives at the carrier to bolster its performance.
Goh declined to comment on possible future capital injections, noting the transformation process would be a “long game” with no “shortcuts.”