Air India's loss in H1 FY27 stands at staggering ₹10,800cr
What's the story
Air India has reported a staggering net loss of approximately ₹10,800 crore in the first half of FY2026-27. The interim financial results were released by Singapore Airlines, which holds a 25.1% stake in the Indian carrier. The report revealed that Singapore Airlines absorbed an equity-accounted loss share of S$361.7 million from Air India for the six months ending on September 30, 2026.
Investment impact
Carrying value of Singapore Airlines's investment in Air India falls
The continued losses from Air India have led to a significant reduction in the carrying value of Singapore Airlines's investment in the Indian carrier.
The value has fallen by 29.5%, or S$334.7 million, from S$1,134.6 million on March 31, 2026, to S$799.9 million at the end of September this year.
This sharp decline highlights the financial challenges faced by both companies amid rising operational costs and geopolitical tensions affecting fuel prices.
Financial performance
Singapore Airlines Group's net profit declines by 43.9%
The broader Singapore Airlines Group also witnessed a decline in its financial performance.
The group's net profit for the first half of FY2026-27 fell by 43.9% year-on-year to S$134 million, down from S$239 million last year.
This was despite recording revenue of S$11.297 billion during the same period.
The group's expenditure also rose by 20.9% to S$10.728 billion, driven in part by an 86.7% surge in average jet fuel prices amid geopolitical tensions in the Middle East region.
Earnings cushion
Lower losses from Air India provide some relief
Despite the decline in net profit and operating profit, lower losses from Air India have provided some relief to the Singapore Airlines Group's second-quarter earnings.
The group's net profit for Q2 rose to S$210 million, helped by a reduction in losses from its investment in Air India.
This development highlights the complex financial dynamics between these two major players in the aviation industry amid rising operational costs and geopolitical challenges.