Air India Sees Decline in Share Loss, While Singapore Airlines Group Faces 44% Drop in H1 Profit to Rs 767 Crore Due to Fuel Costs

NEW DELHI: Air India’s cost-cutting measures are yielding results, as Singapore Airlines (SIA) reported a 16% reduction in its share of Air India’s losses for the first half of the fiscal year. The losses attributed to Air India fell to Rs 2,643 crore from Rs 3,138 crore a year earlier. Overall, the Air India group’s losses also decreased by 16%, totaling Rs 10,530 crore compared to Rs 12,502 crore in the same period last year.

Despite these improvements, SIA’s net profit for the first half of this fiscal year dropped 44% to Rs 979 crore, down from Rs 1,746 crore in the previous year. The airline faced a significant increase in jet fuel prices, which surged 56% to Rs 29,038.5 crore during this period.

SIA noted that Air India is making tangible progress in its multi-year transformation, focusing on enhancing customer experience and operational performance. The airline emphasized that both SIA and its partner, Tata Sons, are committed to supporting Air India’s journey toward profitable growth. This includes strengthening cost efficiencies and improving synergies between Air India and Air India Express.

In the second quarter, SIA reported a profit of Rs 1,534 crore, an increase from Rs 1,154 crore in the same period last fiscal year. This growth was attributed to stronger operating profits and a reduced share of losses from associated companies, particularly Air India, which contributed positively with Rs 804 crore.

SIA views its stake in Air India as a crucial element of its multi-hub strategy, enhancing access to one of the world’s largest and fastest-growing aviation markets. Following a commercial cooperation agreement signed in January 2026, Air India and SIA initiated joint initiatives in October, including additional flights between Singapore and eight Indian cities, along with a more seamless booking experience. Enhanced loyalty program benefits were introduced in April 2026, with further improvements planned for the second quarter of 2027.

SIA stated that it will maintain disciplined cost management while strategically investing in both SIA and Scoot, advancing its multi-hub strategy through its investment in Air India, and fostering partnerships with other carriers in key markets.