Singapore Airlines’ Air India bet racks up S$945m loss after string of setbacks

Singapore Airlines (SIA) has reported a significant loss of S$945 million for Air India between March 2025 and March 2026, following its acquisition of a 25% stake in the Indian carrier less than two years ago. This loss, revealed by a Financial Times report via Mothership, highlights the challenges faced by the joint venture since its full operational commencement in November 2024.

SIA's investment has been impacted by several setbacks since the acquisition. These include a fatal aircraft crash in June 2025, one of the most severe incidents in Air India's history since the takeover. Additionally, Air India faced operational disruptions due to Pakistan's airspace restrictions, which came into effect in April 2025, forcing airlines to re-route their flights and adding to the airline's operational pressures.

The period has been particularly challenging for Air India as it has been undergoing a significant transformation under the stewardship of Tata Sons, which holds the remaining 75% stake in the carrier. The timing could not have been worse for Air India as it navigated these obstacles. A SIA executive quoted by the Financial Times described 2025-2026 as "an annus horribilis (a horrible year) for Air India," emphasizing the difficulties faced by the airline during this transformative period.

Initially, SIA entered the partnership with Tata Sons as an unofficial advisor when the conglomerate explored a takeover of Air India in 2021. Recognizing Air India's growth potential, SIA invested S$822 million initially and an additional S$167 million in March 2025, aiming to expand its business beyond the domestic market. Despite these investments, the recent challenges underscore the complexities involved in reviving a historically state-owned airline and the pressures of a volatile global aviation industry with rising jet fuel costs.