Air India continues to make progress in its fleet renewal
Singapore Airlines (SIA) said it is committed to its 25.1% investment in the Air India Group, 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,” said SIA, adding that it was working closely with its partner Tata Sons to support Air India’s multi-year transformation programme.
Air India faces headwinds such as industry-wide supply chain constraints, air space restrictions, constraints on operations to its key Middle East markets, and elevated jet fuel prices, said the Singapore listed aviation group.
“Nonetheless, Air India continues to make progress in its fleet renewal and aircraft retrofit program, initiatives to elevate the end-to-end customer experience, and improve its operational performance,” said SIA.
The Singapore carrier reported on 14 May the swing from a share of profits of associated companies last year to a loss SGD846 million this year FY2025-26 was due to the Group accounting for its share of Air India’s full year losses, versus only four months the previous year.
Heightened geopolitical tensions, including the conflict in the Middle East, are a major headwind for the airline industry, said SIA on market outlook.
The most immediate impact is on jet fuel prices, which have more than doubled since the conflict began, adding significant cost pressure for airlines. As the Group’s fuel bills are typically priced on a lagged basis, the impact is only partially reflected in March 2026. The full impact is expected to feed through in FY2026/27.
Its net profit declined by SGD1,594 million (-57.4%) to SGD1,184 million, primarily due to the absence of the SGD1,098 million non-cash accounting gain recognised in November 2024 upon the completion of the Air India-Vistara merger, said SIA which released financial results for the year ended 31 March 2026.
From May 4, 2026, SIA and Air India added one domestic and 20 international destinations to their codeshare arrangements. This brings the total number of codeshare points between the two airlines to 82 destinations across 27 countries and territories.
SIA’s total revenue rose 5 per cent to SGD20,522 million from SGD19,520 million a year ago. Fiinews.com
