image sourced from original article at Singapore Airlines reported that Air India recorded a loss of $2.8 billion in the 2025 to 2026 financial year, contributing to a sharp 57.4 percent drop in the Singapore carrier’s net profit to $930 million. The loss resulted in a $743 million hit for Singapore Airlines, which holds a 25.1 percent stake in Air India.
The setback follows a turbulent year for Indian aviation, worsened by geopolitical tensions after the United States and Iran conflict began in late February. Airspace restrictions, particularly the closure of Pakistani airspace, forced longer routes for westbound flights, significantly increasing operating costs for Air India. Elevated jet fuel prices, supply chain constraints, and operational limitations in key Middle East markets added further pressure.
The financial year marked the first full year after the merger of Vistara into Air India, a period described as one of the toughest for Indian carriers since the pandemic. Despite the losses and operational headwinds, Singapore Airlines reaffirmed its commitment to Air India, highlighting ongoing fleet renewal, aircraft retrofits, service improvements, and operational enhancements as part of its long-term multi-hub growth strategy.
