Air India losses drag Singapore Airlines’ profit down $1.59 bn despite record revenue

Singapore Airlines Group’s net profit fell by $1.594 billion to $1.184 billion in FY26, as losses from its associate Air India and the absence of a prior-year accounting gain weighed on the bottomline, even as the airline posted record revenue and a sharp rise in operating profit.

The group said the decline was primarily due to the absence of a $1.098 billion non-cash gain recorded in November 2024 following the Air India–Vistara merger completion, alongside a $846-million share of losses from Air India for the full year, compared with only four months in the previous year.

Air India posted a $2.8 billion loss for fiscal year 2025–26, its biggest loss since it was bought by the Tata Group in 2022.

Despite the profit drop, Singapore Airlines reported a strong operational performance. Operating profit rose 39% to $2.375 billion, driven by robust demand for air travel, higher passenger yields, and lower net fuel costs.

Revenue climbed 5% to a record $20.522 billion, supported by higher passenger traffic and improved load factors, with the group carrying a record 42.4 million passengers during the year.

Total expenditure rose 1.8% to $18.148 billion, as higher non-fuel costs offset savings in fuel expenses. Non-fuel costs increased due to capacity expansion and inflationary pressures. Cargo revenue, however, declined slightly by 2.1% to $2.167 billion, as weaker yields outweighed modest volume growth.

The airline also maintained a strong balance sheet, with reduced debt and an improved debt-equity ratio of 0.62 times. The board proposed a total dividend of 37 cents per share for FY26, combining ordinary and special payouts.

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