New Delhi, May 14 (IANS) Air India piled up a loss of $2.8 billion for the financial year 2025-26, according to the Singapore Airlines’ annual report released on Thursday.

Singapore Airlines Group reported a 57.4 per cent fall in net profit at Singaporean dollars (SGD) 1.184 billion for the financial year ended March 2026 as the losses of Air India, in which the company has a 25.1 per cent share, eroded the overall bottomline.

The Singapore Airlines report states that Air India posted losses amounting to SGD 3.56 billion, or $2.80 billion at current exchange rates, for the 12 months to end-March.

Singapore Airlines (SIA) Group had clocked a net profit of SGD 2.778 billion in 2024-25.

SIA Group said it was committed to its 25.1 per cent investment in Air India, which is a core component of its long-term multi-hub strategy.

“This strategic investment provides the Group with a direct stake in one of the world’s largest and fastest-growing aviation markets, complementing its Singapore hub and strengthening its long-term growth,” the airline said in a press statement.

SIA Group’s net profit declined by SGD 1.594 billion or 57.4 per cent to SGD 1.184 billion, primarily due to the absence of the SGD 1.098 billion non-cash accounting gain recognised in November 2024 upon the completion of the Air India-Vistara merger.

“The swing from a share of profits of associated companies last year to a loss this year (SGD 846 million) was due to the Group accounting for its share of Air India’s full year losses, versus only four months the previous year,” the statement said.

Loss-making Air India has been forced to cancel several international flights in recent ⁠months due to the closure of Pakistan’s airspace and the Middle East conflict, which has adversely impacted its revival plans.

India’s air traffic registered a sequential slowdown in April compared to March for both domestic and international passengers, according to data compiled by the Ministry of Civil Aviation.

The downturn comes in the backdrop of the Middle East conflict, which led to a sharp decline in international flights.

The increase in jet fuel prices has also led to an increase in operating costs, which has come as a further dampener in the airline’s turnaround plans.

India’s domestic air traffic stood at 140.8 lakh passengers, which represents a 4 per cent drop year-on-year as well as month-on-month. International traffic saw a sharper decline of 20 per cent in April compared to March as the number of air passengers fell to 28.3 lakh passengers.

–IANS

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