Singapore Airlines has incurred losses of nearly S$1 billion on its 25% stake in Air India, less than two years after investing in the Indian airline, according to a Financial Times report.
The investment, completed in November 2024 following the merger of Vistara with Air India, has faced multiple challenges, including a fatal aircraft crash, operational disruptions and rising costs.
Singapore Airlines invested S$822 million in additional capital and acquired a 25% stake in the merged airline, while Tata Sons retained the remaining 75%. The transaction also resulted in a one-time accounting gain of S$1.1 billion for Singapore Airlines
Air India turnaround faces multiple challenges
Soon after the deal, Air India required additional funding, with Singapore Airlines injecting another S$167 million. This took its total investment in the carrier to S$989 million.
The airline’s difficulties intensified after Air India flight 171 crashed shortly after take-off from Ahmedabad, killing 260 people. Following the accident, Air India reduced operations while inspecting its Boeing 787 fleet and strengthening safety checks.
The airline also faced disruptions after Pakistan closed its airspace to Indian carriers amid renewed tensions between the two countries. Air India estimated the impact of the disruption at around $600 million.
Additionally, the carrier has been affected by global aviation challenges, including supply chain constraints, higher aircraft fuel costs and a weaker Indian rupee, which has increased expenses largely paid in US dollars.
Singapore Airlines remains committed to long-term turnaround
Singapore Airlines reported a loss of S$945 million for the year ended March 2026 due to Air India-related challenges. The company also reported that losses in the following three months were higher than the previous quarter.
Analysts have raised concerns that Singapore Airlines may need to provide further capital support to Air India as the carrier continues its transformation.
The airline said any future funding decisions would depend on Air India’s business strategy and Singapore Airlines’ broader capital requirements. It added that Air India has made progress in areas such as customer experience, fleet expansion, network growth and operational performance.
Singapore Airlines CEO Goh Choon Phong said the turnaround would require patience, describing it as a long-term process.
Analysts believe Air India represents a high-risk investment but said successful execution could deliver significant returns over time.
