Singapore Airlines Group Reports 57% Net Profit Decline in 2025-26

‍SINGAPORE — Singapore Airlines (SQ) Group reported results for the 2025-26 financial year, concluded in March 2026, with a 57.4% decline in net profit. SQ reported a profit of only SGD 1,184 billion, compared to SGD 2,778 billion in the previous fiscal year. 

Despite a reduced net profit, SIA Group reported a 5% rise in revenue to SGD 20,552 billion, up from SGD 19,540 billion in FY 2024-25.

Air India-Vistara losses are weighing down on earnings

The Groups explained that the cause of the SGD1,594 billion net result decline is “primarily due to the absence of the SGD 1.098 billion cash accounting gain recognized in November 2024 upon the completion of the Air India-Vistara merger.”

Singapore Airlines has also underlined the impact of Air India (AI) losses on the Group's profitability; however, without disclosing the specific details, PTI reported.

“The swing from a share of profits of associated companies last year to a loss this year (SGD 846 million) was due to the Group accounting for its share of Air India's full year losses, versus only four months the previous year,” the company commented in the release.

According to estimates for FY 2025-26, the Air India Group, including Air India and Air India Express, is projected to incur losses exceeding Rs 22,000 crore.

Singapore Airlines remains confident in the Air India investment

SIA Group, a holder of 25,1% stake in Air India Group, said the investment remains a “core component of SQ's 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,” explained SQ Group.

Vistara, previously owned by SIA and Tata Sons, was merged with Air India in November 2024 as part of the Tata Group’s airline consolidation strategy.

Air India conquering challenges

The Group reported Air India continues to face financial and operational challenges, yet the company explained the work on AI’s “transformation programme” is underway.

"Air India faces headwinds such as industry-wide supply chain constraints, airspace restrictions, constraints on operations to its key Middle East markets, and elevated jet fuel prices. SIA is working closely with its partner Tata Sons to support Air India's multi-year transformation programme," SAI Group mentioned in its release.

The Group told TOI that the company is seeing AI’s progress in fleet renewal, aircraft retrofitting, customer experience initiatives, and operational improvements. 

Air India announced a cut of nearly 100 international flights and a temporary suspension of seven overseas routes, resulting in a nearly 27% reduction in international capacity amid rising fuel costs and airspace restrictions, thereby elevating the airline’s operational costs.